Crude Oil Higher Overnight, Hinting a Short Term Low is Near

Crude oil was higher due to short covering overnight as it consolidates some of this month's decline. Stochastics and the RSI are oversold and are turning neutral to bullish hinting that a short term low might be in or is near.

Closes above the 20 day moving average crossing at 74.82 are needed to confirm that a short term low has been posted. If January extends the decline off October's high, the 87% retracement level of this fall's rally crossing at 68.16 is the next downside target.

Wednesday's pivot point, our line in the sand is 70.38

First resistance is the 10 day moving average crossing at 72.10
Second resistance is the 20 day moving average crossing at 74.82

First support is Monday's low crossing at 68.59
Second support is the 87% retracement level of this fall's rally crossing at 68.16

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Natural gas was higher overnight as it extends last week's rally and tested the 62% retracement level of the October-December decline crossing at 5.565. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If January extends this month's rally, the 75% retracement level of the October-December decline crossing at 5.807 is the next upside target. Closes below the 20 day moving average crossing at 4.953 would temper the near term bullish outlook in the market.

Natural gas pivot point for Wednesday is 5.459

First resistance is the overnight high crossing at 5.569
Second resistance is the 75% retracement level of the October-December decline crossing at 5.807

First support is the 10 day moving average crossing at 5.088
Second support is the 20 day moving average crossing at 4.953

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The U.S. Dollar was lower due to profit taking overnight as it consolidates some of this month's rally. Stochastics and the RSI are overbought but remain neutral signaling that additional gains are possible near term.

If March extends this month's rally, the reaction high crossing at 77.81 is the next upside target. Closes below the 20 day moving average crossing at 75.90 would confirm that a short term top has been posted.

First resistance is Tuesday's high crossing at 77.58
Second resistance is the reaction high crossing at 77.81

First support is the 10 day moving average crossing at 76.50
Second support is the 20 day moving average crossing at 75.90

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