Crude Oil Signals Remain Bullish After Overnight Profit taking

Crude oil was lower due to profit taking overnight as it consolidates some of this month's rally. Stochastics and the RSI are becoming overbought but remain bullish signaling that additional short term gains are possible.

If July extends the rally off May's low, the 50% retracement level of May's decline crossing at 78.46 is the next upside target. Closes below the 20 day moving average crossing at 73.27 would confirm that a short term top has been posted.

First resistance is Wednesday's high crossing at 78.13
Second resistance is the 50% retracement level of May's decline crossing at 78.46

Thursday's pivot point for crude oil is 77.29

First support is the 10 day moving average crossing at 74.56
Second support is the 20 day moving average crossing at 73.27

Just click here for your FREE trend analysis of crude oil ETF USO

Natural gas was higher due to short covering overnight as it consolidates some of Wednesday's decline. Stochastics and the RSI are overbought and are turning neutral hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 4.574 would confirm that a short term top has been posted. If July extends this week's rally, the 62% retracement level of the November-May decline crossing at 5.429 is the next upside target.

First resistance is Wednesday's high crossing at 5.196
Second resistance is the 62% retracement level of the November-May decline crossing at 5.429

Thursday's pivot point for natural gas is 5.046

First support is the 10 day moving average crossing at 4.884
Second support is the 20 day moving average crossing at 4.574

Just click here for your FREE trend analysis of natural gas ETF UNG


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