Crude Oil Slips Overnight as the Dollar Edges Higher

Crude oil was lower due to profit taking overnight as it consolidates some of 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 38% retracement level of the 2008 decline crossing at 84.82 is the next upside target. Closes below the 10 day moving average crossing at 79.98 would signal that a short term top has been posted.

Thursday's pivot point, our line in the sand is 82.52

First resistance is Wednesday's high crossing at 83.52
Second resistance is the 38% retracement level of the 2008 decline crossing at 84.82

First support is the 10 day moving average crossing at 79.98
Second support is the 20 day moving average crossing at 76.61

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Natural gas was higher overnight as it extends the rally off December's low. Stochastics and the RSI are diverging but are turning neutral to bullish signaling that sideways to higher prices are possible near term.

If February extends December's rally, October's high crossing at 6.300 is the next upside target. Closes below the 20 day moving average crossing at 5.670 are needed to confirm that a short term top has been posted.

Natural gas pivot point for Thursday is 5.911

First resistance is the 87% retracement level of the October-December decline crossing at 6.077
Second resistance is October's high crossing at 6.300

First support is the 10 day moving average crossing at 5.825
Second support is the 20 day moving average crossing at 5.670

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The U.S. Dollar was higher due to short covering overnight. However, stochastics and the RSI remain bearish hinting that a short term top might be in or is near. Closes below Tuesday's low crossing at 77.39 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 10 day moving average crossing at 78.05
Second resistance is the reaction high crossing at 78.77

First support is the 20 day moving average crossing at 77.75
Second support is Tuesday's low crossing at 77.39

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