Looks Like Crude Oil Has Posted a Top in the Market

Crude oil closed sharply lower [May contract] on Thursday and below trading range support crossing at 104.90 following yesterday's bearish stocks report. Today's downside breakout of the aforementioned trading range and the October-February uptrend line confirm that a top has been posted. The low range close sets the stage for a steady to lower opening on Friday.

Stochastics and the RSI are turning bearish again signaling that sideways to lower prices are possible near term. If May extends today's decline, the 38% retracement level of the October-March rally crossing at 97.84 is the next downside target. Closes above the reaction high crossing at 108.70 would confirm that a short term low has been posted.

First resistance is the reaction high crossing at 108.70. Second resistance is March's high crossing at 110.95. First support is today's low crossing at 102.13. Second support is the 38% retracement level of the October-March rally crossing at 97.84.


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