Crude Oil Rises Overnight, Lower Prices Still Possible Near Term

Crude oil was slightly higher due to short covering overnight as it consolidates some of last week's decline. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term.

If August extends last week's decline, the reaction low crossing at 70.93 is the next downside target. Closes above the 20 day moving average crossing at 76.19 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 75.06
Second resistance is the 20 day moving average crossing at 76.19

Crude oil's pivot point for Wednesday is 72.31

First support is Tuesday's low crossing at 71.09
Second support is the reaction low crossing at 70.93

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Natural gas was slightly higher overnight due to short covering as it consolidates some of Tuesday's decline. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 4.846 would confirm that a short term low has been posted. If August renews last week's decline, the reaction low crossing at 4.285 is the next downside target.

First resistance is the 20 day moving average crossing at 4.846
Second resistance is June's high crossing at 5.249

Wednesday's pivot point for natural gas is 4.741

First support is last Wednesday's low crossing at 4.477
Second support is the reaction low crossing at 4.285

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