Crude Oil Pulls Back on Renewed European Concerns and Demand

Crude oil fell overnight from the highest level weeks due to profit taking as it consolidates some of this week's rally. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 101.29 are needed to confirm that a short term low has been posted. If March renews the decline off January's high, December's low crossing at 92.95 is the next downside target. First resistance is Thursday's high crossing at 100.18. Second resistance is the reaction high crossing at 101.29. First support is last Thursday's low crossing at 95.44. Second support is December's low crossing at 92.95.

Gold was lower overnight and poised to extend this month's decline. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. Closes below the 20 day moving average crossing at 1709.00 are needed to confirm that a short term top has been posted. If April renews the rally off December's low, the 62% retracement level of the September-December decline crossing at 1772.80 is the next upside target. First resistance is last Friday's high crossing at 1765.90. Second resistance is the 62% retracement level of the September-December decline crossing at 1772.80. First support is the overnight low crossing at 1714.00. Second support is the 20 day moving average crossing at 1709.00.

Natural gas was slightly higher overnight. Stochastics and the RSI are bearish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 2.844 are needed to confirm that a short term low has been posted. If March renews the multi year decline, monthly support crossing at 1.960 is the next downside target. First resistance is last Monday's high crossing at 2.844. Second resistance is January's high crossing at 3.153. First support is January's low crossing at 2.289. Second support is monthly support crossing at 1.960.

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