Crude Oil Bears Take a Clear Advantage Into The Weekend

I must admit, I have been looking forward to posting my bear waiting for his steak dinner, and it looks like he is getting it. Crude oil closed lower on Friday and tested the 87% retracement level of the September-January rally crossing at 69.58. The mid range close sets the stage for a steady opening on Monday. Stochastics and the RSI are diverging and are turning neutral to bearish signaling that sideways to lower prices are possible near term.

If March extends the decline off January's high, September's low crossing at 67.46 is the next downside target. Closes above the 20 day moving average crossing at 76.85 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 74.36
Second resistance is the 20 day moving average crossing at 76.85

First support is today's low crossing at 69.50
Second support is September's low crossing at 67.46

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Natural gas closed higher on Friday and above the 20 day moving average crossing at 5.489 confirming that a low has been posted. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If March extends today's rally, the reaction high crossing at 5.804 is the next upside target. Closes below Thursday's low crossing at 5.227 would temper the near term friendly outlook.

First resistance is today's high crossing at 5.598
Second resistance is the reaction high crossing at 5.804

First support is Thursday's low crossing at 5.227
Second support is last week's low crossing at 5.060

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The U.S. Dollar closed higher on Friday as it extended this week's rally above the 38% retracement level of the 2009-2010 decline crossing at 79.71. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways prices are possible near term.

If March extends this winter's rally, the 50% retracement level of the 2009-2010 decline crossing at 81.32 is the next upside target. Closes below the 20 day moving average crossing at 78.47 would confirm that a short term top has been posted.

First resistance is today's high crossing at 80.82
Second resistance is the 50% retracement level of the 2009-2010 decline crossing at 81.32

First support is the 10 day moving average crossing at 79.34
Second support is the 20 day moving average crossing at 78.47

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