Crude Oil Bulls Struggle With Strong Resistance at 82 Dollars

Crude oil was higher overnight as it extends the rally off December's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If February extends this rally, the reaction high crossing at 81.59 is the next upside target. Closes below the 20 day moving average crossing at 75.59 are needed to confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 79.51

First resistance is the overnight high crossing at 81.16
Second resistance is the reaction high crossing at 81.59

First support is the 10 day moving average crossing at 77.43
Second support is the 20 day moving average crossing at 75.59

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Natural gas was higher due to short covering overnight as it consolidates some of last week's decline and is trading above the 10 day moving average crossing at 5.782. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term.

Closes below the 20 day moving average crossing at 5.527 are needed to confirm that a short term top has been posted. If February resumes December's rally, the 87% retracement level of the October-December decline crossing at 6.077 is the next upside target.

Monday's pivot point for natural gas is 5.65

First resistance is last Tuesday's high crossing at 6.038
Second resistance is the 87% retracement level of the October-December decline crossing at 6.077

First support is the 20 day moving average crossing at 5.527
Second support is last Thursday's low crossing at 5.505

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The U.S. Dollar was lower overnight and is trading below initial support marked by the 10 day moving average crossing at 78.21. Stochastics and the RSI have turned bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 77.52 are needed to confirm that a short term top has been posted. If March renews last month's rally, the 38% retracement level of the 2008-2009 decline crossing at 79.72 is the next upside target.

First resistance is the reaction high crossing at 78.77
Second resistance is the 38% retracement level of the 2008-2009 decline crossing at 79.72

First support is last Tuesday's low crossing at 77.67
Second support is the 20 day moving average crossing at 77.52

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