Crude Oil Market Commentary For Monday Evening

Crude oil closed lower on Monday and below the 20 day moving average crossing at 80.44 confirming that a short term top has been posted. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near term. If May extends today's decline, the reaction low crossing at 77.44 is the next downside target. Closes above the 10 day moving average crossing at 81.44 would confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 81.44. Second resistance is last Friday's high crossing at 83.47. First support is today's low crossing at 80.89. Second support is the reaction low crossing at 77.44.

Natural gas closed higher due to short covering on Monday as it consolidates some of this winter's decline. The high range close sets the stage for a steady to higher opening on Tuesday. 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 4.824 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 4.614. Second resistance is the 20 day moving average crossing at 4.824. First support is today's low crossing at 4.407. Second support is weekly support crossing at 4.157.

The U.S. Dollar closed higher on Monday as it rebounds off the lower boundary of the trading range of the past six weeks. The high range close sets the stage for a steady to higher opening on Tuesday. 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 last Friday's low crossing at 79.95. Second support is the reaction low crossing at 79.92.

Watch all of our latest FREE trading videos.....

A Sneak Peek At The S&P 500

Is The US Dollar Reversing Again?

A Sneak Peek At Gold

Share