Crude Trades Lower on Stronger Dollar, Can The Bulls Maintain Their Advantage?

Crude oil was lower due to profit taking overnight as it consolidates some of the rally off this month's low. 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 74.93 would confirm that a short term top has been posted.

Friday's pivot point, our line in the sand is 78.22

First resistance is Thursday's high crossing at 79.29
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 75.21
Second support is the 20-day moving average crossing at 74.93

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Natural gas was lower overnight as it extends this month's choppy sideways trading pattern. Stochastics and the RSI are neutral signaling that sideways trading is possible near term.

Closes above the reaction high crossing at 5.680 or below 5.060 are needed to confirm a breakout of this month's trading range and point the direction of the next trending move.

Natural gas pivot point for Friday is 5.242

First resistance is Tuesday's high crossing at 5.560.
Second resistance is the reaction high crossing at 5.680.

First support is the overnight low crossing at 5.120.
Second support is the reaction low crossing at 5.060.

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The U.S. Dollar was higher overnight and tested the 50% retracement level of the 2009 decline crossing at 81.32. Stochastics and the RSI are diverging but are turning 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 79.85 are needed to confirm that a short term top has been posted.

First resistance is the overnight 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 80.35
Second support is the 20 day moving average crossing at 79.85

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