Crude Oil Slightly Higher on Overnight Short Covering

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

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. Closes above the 20 day moving average crossing at 76.48 are needed to confirm that a short term low has been posted.

Thursday's pivot point, our line in the sand is 71.56

First resistance is the 10 day moving average crossing at 74.85
Second resistance is the 20 day moving average crossing at 76.48

First support is Wednesday's low crossing at 70.13
Second support is the 87% retracement level of this fall's rally crossing at 68.16

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Natural gas was higher due to short covering overnight as it consolidates some of Wednesday's key reversal down. Stochastics and the RSI remain 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 4.830 would temper the near term bullish outlook in the market.

Nat gas pivot for Thursday is 4.992

First resistance is Wednesday's high crossing at 5.230
Second resistance is the reaction high crossing at 5.290

First support is the 10 day moving average crossing at 4.830
econd support is the 20 day moving average crossing at 4.830

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The U.S. 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 20 day moving average crossing at 75.62 would temper the near term bullish outlook in the market.

First resistance is Wednesday's high crossing at 76.66
Second resistance is November's high crossing at 77.27

First support is the 10 day moving average crossing at 75.73
Second support is the 20 day moving average crossing at 75.62

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