Crude Oil Market Commentary For Monday Evening

Crude oil was steady to slightly higher overnight as it consolidates some of last Friday's decline. Stochastics and the RSI are diverging and have turned bearish again signaling that sideways to lower prices are possible near term.

If March extends last week's decline, last September's low crossing at 67.46 is the next downside target. Closes above the 20 day moving average crossing at 76.22 would confirm that a short term low has been posted.

Monday's pivot point, our line in the sand is 71.54

First resistance is the 10 day moving average crossing at 73.90
Second resistance is the 20 day moving average crossing at 76.22

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

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Natural gas was higher overnight as it extends last Friday's close above the 20 day moving average crossing at 5.484. Stochastics and the RSI remain bullish signaling that additional strength is possible near term.

If March extends the overnight rally, the reaction high crossing at 5.804 is the next upside target. Closes below the 10 day moving average crossing at 5.278 are needed to confirm that a short term top has been posted.

Natural gas pivot point for Monday is 5.499

First resistance is the overnight high crossing at 5.680
Second resistance is the reaction high crossing at 5.804

First support is the 20 day moving average crossing at 5.484
Second support is the 10 day moving average crossing at 5.378

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The U.S. Dollar was lower due to profit taking overnight as it consolidates some of last week's rally but remains above the 38% retracement level of the 2009 decline crossing at 79.71. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near term.

If March extends this winter's rally, the 50% retracement level of the 2009 decline crossing at 81.32 is the next upside target. Closes below the 20 day moving average crossing at 78.63 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 80.82
Second resistance is the 50% retracement level of the 2009 decline crossing at 81.32

First support is the 10 day moving average crossing at 79.55
Second support is the 20 day moving average crossing at 78.63

Just click here for your FREE trend analysis of the U.S. Dollar ETF UUP

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