Crude Oil Continues in Trading Range Slightly Above 87% Retracement

Crude oil closed lower on Wednesday but remains above the 87% retracement level of the 2011-2012 rally crossing at 81.36. The low range close sets the stage for a steady to lower opening when Thursday's night session begins. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term. If July renews this spring's decline, last October's low crossing at 77.05 is the next downside target. Closes above the 20 day moving average crossing at 87.66 are needed to confirm that a low has been posted. First resistance is the reaction high crossing at 87.03. Second resistance is the 20 day moving average crossing at 87.66. First support is Tuesday's low crossing at 81.07. Second support is last October's low crossing at 77.05.

Natural gas closed lower on Wednesday as it extended the decline off May's high. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If July renews the decline off May's high, April's low crossing at 2.136 is the next downside target. Closes above the 20 day moving average crossing at 2.496 are needed to confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 2.496. Second resistance is May's high crossing at 2.838. First support is Tuesday's low crossing at 2.173. Second support is April's low crossing at 2.136.

Gold closed higher on Wednesday as it extends the rebound off last Friday's low. The high range close sets the stage for a steady to higher opening when Thursday's night session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near term. If August renews the rally off May's low, April's high crossing at 1674.30 is the next upside target. Closes below the 20 day moving average crossing at 1586.90 are needed to confirm that a short term top has been posted. First resistance is the reaction high crossing at 1632.00. Second resistance is May's high crossing at 1674.30. First support is the 20 day moving average crossing at 1586.90. Second support is May's low crossing at 1529.30.

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