Bulls Lose Their Momentum.....Crude Oil Closes Below 20 Day Moving Average

Crude oil closed lower on Friday and below the 20 day moving average crossing at 83.56 confirming that a short term top has been posted. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. If May extends today's decline, the 38% retracement level of the February-April rally crossing at 80.66 is the next downside target. Closes above Wednesday's high crossing at 86.39 would temper the near term bearish outlook. First resistance is today's high crossing at 85.44. Second resistance is this month's high crossing at 87.09. First support is today's low crossing at 82.52. Second support is the 38% retracement level of the February-April rally crossing at 80.66.

Natural gas closed higher due to short covering on Friday and the high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Multiple closes above the reaction high crossing at 4.334 are needed to confirm that a low has been posted. If May renews this winter's decline, weekly support crossing at 3.502 is the next downside target. First resistance is the reaction high crossing at 4.334. Second resistance is the 25% retracement level of the October-April decline crossing at 4.405. First support is the reaction low crossing at 3.857. Second support is the early April low crossing at 3.810.

The U.S. Dollar closed higher due to short covering on Friday as it consolidates some of the decline off March's high. The mid range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term. If June extends this week's decline, March's low crossing at 79.73 is the next downside target. Closes above the 20 day moving average crossing at 81.30 are needed to confirm that a short term low has been posted. First resistance is today's high crossing at 81.04. Second resistance is the 20 day moving average crossing at 81.30. First support is Wednesday's low crossing at 80.14. Second support is March's low crossing at 79.73.

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