Crude Oil Closes Higher, Bulls Target 75.45 to Prove Their Case

Crude oil closed higher on Wednesday and above the 10 day moving average crossing at 73.94 as it extends this week's rebounded. Winter weather across the Northeast along with a rebound in the Dollar helped to underpin today's rally. The high range close sets the stage for a steady to higher opening on Thursday.

Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 75.45 are needed to confirm that a short term low has been posted. If March renews the decline off January's high, September's low crossing at 67.46 is the next downside target.

First resistance is today's high crossing at 74.97
Second resistance is the 20 day moving average crossing at 75.45

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

Just click here for your FREE trend analysis of crude oil ETF USO

Natural gas closed higher due to short covering on Wednesday but remains below the 10 day moving average crossing at 5.350. The mid-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning bearish hinting that sideways to lower prices are possible near term.

Closes below last Thursday's low crossing at 5.227 are needed to confirm that a short term top has been posted. If March renews the rally off January's low, the reaction high crossing at 5.804 is the next upside target.

First resistance is the 20 day moving average crossing at 5.454
Second resistance is Monday's high crossing at 5.680

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

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

The U.S. Dollar posted an inside day with a higher close on Wednesday ending a two day correction off last Friday's high. The mid-range close sets the stage for a steady opening on Thursday. Stochastics and the RSI are overbought and are turning bearish signaling that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 78.93 are needed to confirm that a short term top has been posted. 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.

First resistance is last Friday'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 79.81
Second support is the 20 day moving average crossing at 78.93


Still Our Best Offer EVER....10 FREE Trading Lessons


Share