Crude Oil Market Commentary For Friday Evening

Crude oil closed lower due to profit taking on Friday as it consolidated some of this rally off February's low. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought, diverging and are turning neutral to bearish hinting that a short term top might be in place. Closes below the 20 day moving average crossing at 80.18 would confirm that a short term top has been posted. If May extends the rally off February's low, January's high crossing at 85.43 is the next upside target. First resistance is today's high crossing at 83.47. Second resistance is January's high crossing at 85.43. First support is the 10 day moving average crossing at 81.35. Second support is the 20 day moving average crossing at 80.18.

Natural gas closed lower on Friday as it extends some of this winter's decline. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If May extends this winter's decline, weekly support crossing at 4.157 is the next downside target. Closes above the 20 day moving average crossing at 4.875 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 4.640. Second resistance is the 20 day moving average crossing at 4.875. First support is today's low crossing at 4.443. Second support is weekly support crossing at 4.157.

The U.S. Dollar closed lower on Friday and is challenging the lower boundary of the trading range of the past five weeks. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 79.92 are needed to confirm a downside breakout of the aforementioned trading range and would open the door for a larger degree decline into spring. If June renews this winter's rally, weekly resistance crossing at 81.97 is the next upside target. First resistance is the reaction high crossing at 81.70. Second resistance is weekly resistance crossing at 81.97. First support is today's low crossing at 79.95. Second support is the reaction low crossing at 79.92.


Gold Trading Signals - GLD, DGO, DZZ, GDX, ASA


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