Crude Oil Falls Overnight, Trading Below 20 Day Moving Average

May crude oil was lower overnight as it extends Monday's decline and is trading below the 20 day moving average crossing at 50.50.

Stochastics and the RSI are turning neutral signaling that sideways to lower prices are possible near term. Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

If May renews last week's rally, March's high crossing at 54.66 then January's high crossing at 58.31 are the next upside targets.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the overnight low crossing at 50.00.
Second support is last Wednesday's low crossing at 47.26.

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The June Dollar was higher due to short covering overnight as it extends Monday's rally. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term.

Closes above the 20 day moving average crossing at 85.66 are needed to confirm that a short term low has been posted and would signal that the c-wave of an a-b-c correction off March's low is underway.

If June renews the decline off last week's high, March's low crossing at 83.15 is the next downside target.

First resistance is the 20 day moving average crossing at 85.66.
Second resistance is the reaction high crossing at 86.61.

First support is Monday's low crossing at 84.10.
Second support is March's low crossing at 83.14.

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The June S&P 500 index was lower overnight due to profit taking as it consolidates some of last week's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends the rally off March's low, February's high crossing at 867.50 is the next upside target. Closes below the 20 day moving average crossing at 793.60 are needed to confirm that a short term top has been posted.

First resistance is Monday's high crossing at 847.90.
Second resistance is February's high crossing at 867.50.

First support is the 10 day moving average crossing at 816.59.
Second support is the 20 day moving average crossing at 793.60.

The June S&P 500 Index was down 10.90 points. at 819.50 as of 5:50 AM CST. Overnight action sets the stage for a lower opening by the March S&P 500 index when the day session begins later this morning.

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4:30 PM ET........Apr 3 API Oil Industry Report

..................Crude Stocks (Net Change) (expected +2.3M; previous +3.27M)

..................Gasoline Stocks (Net Change) (expected -700K; previous -451K)

..................Distillate Stocks (Net Change) (expected -200K; previous +1.77M)

..................Refinery Runs (expected 82.1%; previous 81.8%)

Crude Oil Looks To Open Lower On Tuesday After Today's Low Range Close

May crude oil closed lower on Monday due to profit taking as it consolidated some of last week's rally. The low range close sets the stage for a steady to lower opening on Tuesday.

Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

If May extends last week's rally, March's high crossing at 54.66 is the next upside target. Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 20 day moving average crossing at 50.35.
Second support is last Wednesday's low crossing at 47.26.

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The June Dollar posted a key reversal up on Monday as it consolidated some of last week's decline but remains below the 10 day moving average crossing at 85.15. The high range close sets the stage for a steady to higher opening on Tuesday.

Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If June extends last week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 20 day moving average crossing at 85.85 would confirm that a short term low has been posted.

First resistance is the 20 day moving average crossing at 85.85.
Second resistance is last Monday's high crossing at 86.61.

First support is today's low crossing at 84.10.
Second support is March's low crossing at 83.14.

Crude Oil Declines As Stocks Fall

"Crude Oil Falls for a Second Day as U.S. Equities Decline"
Crude oil fell for a second day in New York as U.S. stocks declined on speculation that bank loan losses will increase. Oil fell as much as 4.2 percent after Mike Mayo, analyst at Calyon Securities, advised selling bank shares and International Business Machines Corp.’s purchase of Sun....Complete Story

"Venezuela to Develop Iran's Oil Fields"
Venezuela would participate in developing Iran's oil fields, according to a report released by Iran's Press TV website on Sunday. Venezuelan state oil company, Petroleos de Venezuela SA (PDVSA), signed a memorandum of understanding (MoU) to develop "17 small oil fields in Iran," the report said....omplete Story

"Oil Prices Slide In Line With Stock Markets"
Oil prices dropped more than a dollar on Monday after earlier bouncing above 54 dollars per barrel in London, as traders tracked fresh falls on global stock markets.
In London trade on Monday, Brent North Sea crude for delivery in May dived 1.16....Complete Story

Crude Oil Opens Sharply Lower Monday Morning

May crude oil was higher overnight, above the 10 day moving average crossing at 51.81 but has opened sharply lower this morning.

Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near term. Near term is the key here, we still see crude falling back to the $45 dollar area.

If May extends last week's rally, March's high crossing at 54.66 then January's high crossing at 58.31 are the next upside targets.

Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 10 day moving average crossing at 51.81.
Second support is the 20 day moving average crossing at 50.45.

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The June Dollar was steady to slightly lower overnight as it extends last Thursday's decline below the 10 day moving average crossing at 85.09. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If June extends the decline off last week's high, March's low crossing at 83.15 is the next downside target. Closes above the 20 day moving average crossing at 85.82 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 85.09.
Second resistance is the 20 day moving average crossing at 85.82.

First support is the overnight low crossing at 84.10.
Second support is March's low crossing at 83.14.

Where Is Crude Oil Headed This Week, And Beyond

What an amazing rally the bulls have enjoyed, but it is not rocket science to understand that just like the equity markets oil is more likely to retrace back to $45 than it is to continue up to $65 from here. Look for crude to pull back to the shaded area in the not to distant future.....

Drilling For Oil In Illinois?

"Indigo-Energy Completes Drilling Oil, Gas Wells in Illinois Basin"
Indigo-Energy, ticker IDGG, has completed the drilling of four wells in the Illinois Basin. The company revealed its plans to commence drilling in this region in December of 2008 and is announcing today the completion of this project.....Complete Story

Crude Oil Closes Lower On Unemployment Concerns

"Oil Drops On Concern U.S. Unemployment Will Erode Fuel Demand"
Crude oil dropped after a report showed the U.S. jobless rate at a 25-year high, adding to concern fuel demand will slide further. Oil fell as much as 3.1 percent after the Labor Department said the economy lost more than 650,000 jobs for a fourth consecutive month. Total daily fuel demand averaged over the past four weeks reached the lowest since October, the Energy Department said April 1.....Complete Story

Crude Oil Higher Overnight, Falling At Friday's Open

May crude oil was higher overnight as it extends Thursday's rally above the 10 day moving average crossing at 51.95.

Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

If May extends this week's rally, the reaction high crossing at 54.66 then January's high crossing at 58.31 are the next downside targets.

Closes below Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is the 20 day moving average crossing at 50.23.
Second support is Wednesday's low crossing at 47.26.

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The June Dollar was steady to slightly lower overnight as it extends Thursday's decline below the 10 day moving average crossing at 85.05.

Stochastics and the RSI are turning neutral to bearish signaling that sideways to lower prices are possible near term.

Multiple closes below the 10 day moving average crossing at 85.05 would temper the near term friendly outlook in the market.

Closes above Monday's high crossing at 86.61 are needed to confirm that a short-term low has been posted.

First resistance is the 20 day moving average crossing at 86.09.
Second resistance is Monday's high crossing at 86.61.

First support is Thursday's low crossing at 84.46.
Second support is March's low crossing at 83.14.

Crude Oil Stock Market Winners and Losers

Winners

Atlas Pipeline Partners, L.P....+16.07%
FX Energy.......................+14.39%
Meridian Resource................+9.52%
Stone Energy.....................+7.81%
Parallel Petroleum...............+7.03%

Losers

Energy Partners..................-16.67%
Edge Petroleum...................-10.53%
Syntroleum........................-8.22%
Brigham Exploration...............-5.79%
McMoRan Exploration...............-2.77%

Changes based on the last 2 days of trading

Crude Oil Closes Higher On Falling Dollar and Stronger Equities Market

May crude oil closed up $4.15 at $52.54 a barrel today. Prices closed nearer the session high today on short covering and fresh speculative buying interest. A stronger U.S. stock market and optimism in the wake of the G-20 meeting in London boosted crude today. A sharply lower U.S. dollar also aided crude today. Bulls have regained upside near term technical momentum.

The June U.S. dollar index closed down 109 points at 84.87 today. Prices closed nearer the session low today. Bulls faded today. Bulls' next upside price objective is to close prices above solid technical resistance at this week's high of 86.61.