Crude Oil Higher on Short Covering, Bears Maintain The Near Term Advantage

Crude oil was higher due to short covering overnight as it consolidates some of this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If January extends the decline off October's high, the 75% retracement level of this fall's rally crossing at 70.23 is the next downside target. Closes above the 20day moving average crossing at 77.07 are needed to confirm that a short term low has been posted.

Wednesday's pivot point, our line in the sand is 73.15

First resistance is the 10 day moving average crossing at 75.84
Second resistance is the 20 day moving average crossing at 77.07

First support is the reaction low crossing at 72.39
Second support is the 75% retracement level of this fall's rally crossing at 70.23

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Natural gas was higher overnight as it extends this week's rally above the 20 day moving average. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

If January extends this week's rally, the reaction high crossing at 5.290 is the next upside target. Closes below the 20 day moving average crossing at 4.844 would temper the near term bullish outlook in the market.

Nat gas pivot point for Wednesday is 5.078

First resistance is the overnight high crossing at 5.222
Second resistance is the reaction high crossing at 5.290

First support is the 10 day moving average crossing at 4.884
Second support is the 20 day moving average crossing at 4.844

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The March Dollar was lower due to profit taking overnight as it consolidates some of Tuesday's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If March extends this week's rally, November's high crossing at 77.27 is the next upside target. Closes below the 10 day moving average crossing at 75.60 would temper the near term bullish outlook in the market.

First resistance is Tuesday's high crossing at 76.65
Second resistance is November's high crossing at 77.27

First support is the 10 day moving average crossing at 75.60
Second support is the reaction low crossing at 74.66

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