Crude Oil Ends The Week on a Sour Note

Crude oil [May contract] closed lower on Friday ending a two day bounce off Tuesday's low. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning neutral to bullish signaling that a low might be in or is near. Closes above the 20 day moving average crossing at 104.69 are needed to confirm that a short term low has been posted. If May extends the decline off March's high, the 38% retracement level of the October-March rally crossing at 97.84 is the next downside target. First resistance is the 20 day moving average crossing near 104.69. Second resistance is the reaction high crossing at 105.49. First support is Tuesday's low crossing at 100.68. Second support is the 38% retracement level of the October-March rally crossing at 97.84.

Natural gas [May contract] closed slightly higher due to light short covering on Friday. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If May extends the multi year decline, monthly support crossing at 1.960 is the next downside target. Closes above the 20 day moving average crossing at 2.218 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 2.078. Second resistance is the 20 day moving average crossing at 2.218. First support is today's low crossing at 1.959. Second support is monthly support crossing at 1.620.

Gold [June contract] closed lower on Friday and the low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are neutral to bullish signaling sideways to higher prices are possible near term. Closes above last Monday's high crossing at 1685.40 are needed to confirm that a short term low has been posted. If June extends the decline off February's high, the 75% retracement level of the December-February rally crossing at 1595.00 is the next downside target. First resistance is last Monday's high crossing at 1685.40. Second resistance is the reaction high crossing at 1699.60. First support is last Wednesday's low crossing at 1613.00. Second support is the 75% retracement level of the December-February rally crossing at 1595.00.

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