Crude Oil Bears Appear to Have a Clear Near Term Advantage

Crude oil was lower overnight as it extends Tuesday's decline below the 10 day moving average. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. If February extends this week's decline, the 20 day moving average crossing at 78.49 is the next downside target.

Wednesday's pivot point, our line in the sand is 81.01

First resistance is the 10 day moving average crossing at 81.38
Second resistance is Monday's high crossing at 83.95

First support is the overnight low crossing at 79.63
Second support is the 20 day moving average crossing at 78.49

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Natural gas was lower overnight as it consolidates some of Tuesday's short covering bounce. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If February extends this week's decline, the 50% retracement level of the December-January rally crossing at 5.314 is the next downside target. Closes above the 20 day moving average crossing at 5.728 would temper the near term bearish outlook in the market.

Natural gas pivot point for Wednesday is 5.517

First resistance is the 10 day moving average crossing at 5.694
Second resistance is the 20 day moving average crossing at 5.728

First support is Tuesday's low crossing at 5.354
Second support is the 50% retracement level of the December-January rally crossing at 5.314

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The U.S. Dollar was lower overnight as it extends this week's decline. Stochastics and the RSI remain bearish signaling that additional weakness is possible near term. If March extends the decline off December's high, the 50% retracement level of the November-December rally crossing at 76.66 is the next downside target.

Closes above the 20 day moving average crossing at 77.87 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 77.68
Second resistance is the 20-day moving average crossing at 77.87

First support is the overnight low crossing at 76.86
Second support is the 50% retracement level of the November-December rally crossing at 76.66

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