Crude Oil Market Commentary For Thursday Evening

Crude oil closed lower on Thursday as it consolidates some of its earlier gains this week. A short covering rally tempered early session losses and the mid range close sets the stage for a steady to higher opening on Friday.

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 reaction high crossing at 79.92 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 77.16
Second resistance is the 20 day moving average crossing at 78.18

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

Today’s Stock Market Club Trading Triangles

Natural gas closed lower on Thursday as it extends this fall's decline. The low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If January extends this week's decline, weekly support crossing at 4.157 is the next downside target. Closes above the 20 day moving average crossing at 4.848 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 4.798
Second resistance is the 20 day moving average crossing at 4.848

First support is today's low crossing at 4.432
Second support is weekly support crossing at 4.157

How to Use Money Management Stops Effectively

The U.S. Dollar closed lower on Thursday due to profit taking. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain bearish signaling that additional weakness is possible near term.

If March extends this year's decline, weekly support crossing at 73.39 is the next downside target. Closes above the reaction high crossing at 76.50 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 75.24
Second resistance is last Friday's high crossing at 76.50

First support is last Wednesday's low crossing at 74.21
Second support is weekly support crossing at 73.39

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