Crude Oil Bulls Continue to Maintain Slight Near Term Advantage

Crude oil closed higher on Monday as it extends the rally off this month's low. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If March extends this month's rally, the 75% retracement level of the January-February decline crossing at 80.72 is the next upside target. Closes below the 20 day moving average crossing at 75.30 would confirm that a short term top has been posted.

First resistance is today's high crossing at 80.51
Second resistance is the 75% retracement level of the January-February decline crossing at 80.72

First support is the 10 day moving average crossing at 76.30
Second support is the 20 day moving average crossing at 75.30

Secrets of the 52 Week High Rule

Natural gas gapped down and closed lower on Monday as it extended last Friday's breakout below the lower boundary of this month's trading range, which crosses at 5.060. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If March extends today's decline, the 87% retracement level of the December-January rally crossing at 4.734 is the next downside target. Closes above the 20 day moving average crossing at 5.323 are needed to confirm that a low has been posted.

First resistance is the 10 day moving average crossing at 5.265
Second resistance is the 20-day moving average crossing at 5.323

First support is today's low crossing at 4.841
Second support is the 87% retracement level of the December-January rally crossing at 4.734

Is Gold Poised to Go Higher or Lower?

The U.S. Dollar closed lower on Monday due to profit taking as it consolidates below the 50% retracement level of the 2009 decline crossing at 81.32. The mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are diverging but are turning neutral to bullish 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 79.93 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 the 10 day moving average crossing at 80.31
Second support is the 20 day moving average crossing at 79.93

Today’s Stock Market Club Trading Triangles

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