February crude oil was higher overnight due to short covering as it consolidates some of last week’s decline. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a short term low might be in or is near. If February extends last week’s decline, psychological support crossing at 35.00 is the next downside target. Closes above the 20 day moving average crossing at 44.39 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 41.53. Second resistance is the 20 day moving average crossing at 44.39. First support is last Wednesday’s low crossing at 35.13. Second support is psychological support crossing at 35.00.