Greece Rescue Package Sends Crude Oil Higher

Crude oil closed higher on optimism over a financial rescue package for Greece on Tuesday as it extended the rebounded off the 87% retracement level of the September-January rally crossing at 69.58. The high range close sets the stage for a steady to higher opening on Wednesday.

Stochastics and the RSI are diverging but are turning neutral with today's rally signaling that a low might be in or is near. Closes above the 20 day moving average crossing at 75.80 are needed to confirm that a short term low has been posted. If March extends the decline off January's high, September's low crossing at 67.46 is the next downside target.

Tuesday evening pivot point for crude oil is 73.10

First resistance is today's high crossing at 74.15
Second resistance is the 20 day moving average crossing at 75.80

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

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Natural gas closed lower on Tuesday and below the 10 day moving average crossing at 5.343 following yesterday's downside reversal. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are turning neutral to 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 extends the rally off January's low, the reaction high crossing at 5.804 is the next upside target.

Natural gas pivot point for Tuesday evening is 5.352

First resistance is Monday's high crossing at 5.680
Second resistance is the reaction high crossing at 5.804

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

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The U.S. Dollar closed lower due to profit taking on Tuesday as it consolidated some of last week's rally but remains above the 38% retracement level of the 2009-2010 decline crossing at 79.71. The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways prices are possible near term.

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. Closes below the 20 day moving average crossing at 78.77 are needed to 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 2009-2010 decline crossing at 81.32

First support is the 10 day moving average crossing at 79.69
Second support is the 20 day moving average crossing at 78.77

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