Crude Oil Falls on a Decline in China's Fuel Imports and Speculation on U.S. crude Stockpiles

Crude oil [May contract] closed lower for the second day in a row on Tuesday due to a decline in China's fuel imports and speculation that U.S. crude stockpiles rose to the highest in 22 years raised concern of slowing global demand.

The low range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are possible near term.

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. Closes above the 20 day moving average crossing at 105.18 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing near 103.62. Second resistance is the 20 day moving average crossing at 105.18. First support is today's low crossing at 100.68. Second support is the 38% retracement level of the October-March rally crossing at 97.84.

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