Crude Oil Bulls Cling to a Near Term Advantage

Crude oil closed higher on Wednesday and remains poised to extend the rally off this month's low. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If May extends this month's rally, the 75% retracement level of the January-February decline crossing at 81.63 is the next upside target. Closes below the 20 day moving average crossing at 76.60 would confirm that a short term top has been posted.

Crude oil pivot point, our line in the sand is 79.68

First resistance is Monday's high crossing at 81.15
Second resistance is the 75% retracement level of the January-February decline crossing at 81.63

First support is the 10 day moving average crossing at 78.32
Second support is the 20 day moving average crossing at 76.60

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Natural gas closed higher due to short covering on Wednesday as it consolidated some of this week's decline. The mid range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.

If May extends this week's decline, the 87% retracement level of the December-January rally crossing at 4.819 is the next downside target. Closes above the 20 day moving average crossing at 5.293 are needed to confirm that a low has been posted.

Natural gas pivot point for Wednesday evening is 4.861

First resistance is the 10 day moving average crossing at 5.218
Second resistance is the 20 day moving average crossing at 5.293

First support is today's low crossing at 4.859
Second support is the 87% retracement level of the December-January rally crossing at 4.819

Just click here for your FREE trend analysis of natural gas ETF UNG


The U.S. Dollar closed lower due to light profit taking on Wednesday as it consolidates below the 50% retracement level of the 2009 decline crossing at 81.32. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are diverging but are neutral signaling that sideways to higher prices are possible near term.

If March extends this winter's rally, the 62% retracement level of the 2009 decline crossing at 82.92 is the next upside target. Closes below the 20 day moving average crossing at 80.15 are needed to confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 81.43
Second resistance is the 62% retracement level of the 2009 decline crossing at 82.92

First support is Tuesday's low crossing at 80.15
Second support is the 20 day moving average crossing at 80.15


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