Crude oil closed lower on Friday after India's central bank decided to raise its key lending and borrowing rates in an effort to reduce inflation. Investors also fear that central banks in China could follow India's lead. Ongoing concerns about the slow pace of the economic recovery and high global oil inventories also weighed on prices. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are diverging and are turning neutral to bearish signaling that a short term top is in or is near. Closes below Monday's low crossing at 79.41 would confirm that a short term top has been posted. If May renews the rally off February's low, January's high crossing at 85.43 is the next upside target. First resistance is the reaction high crossing at 83.47. Second resistance is January's high crossing at 85.43. First support is today's low crossing at 80.14. Second support is Monday's low crossing at 80.89.
Natural gas closed higher due to short covering on Friday as it consolidates some of this week's decline and is trading above broken weekly support crossing at 4.157. The high range close sets the stage for a steady to higher 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 4.035 is the next downside target. Closes above the 20 day moving average crossing at 4.626 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 4.439. Second resistance is the 20 day moving average crossing at 4.626. First support is today's low crossing at 4.114. Second support is weekly support crossing at 4.035.
The U.S. Dollar closed higher on Friday and above the 20 day moving average crossing at 80.70 signaling that a short term low has been posted. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near term. If June extends this week's rally, February's high crossing at 81.70 is the next upside target. If June renews Wednesday's decline, the 38% retracement level of the November-February rally crossing at 79.17 is the next downside target. First resistance is today's high crossing at 81.14. Second resistance is February's high crossing at 81.70. First support is Wednesday's low crossing at 79.73. Second support is the 38% retracement level of the November-February rally crossing at 79.17.
The "Super Cycle" in Gold and How It Will Affect Your Pocketbook in 2010
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