February crude oil was higher overnight due to short covering as it consolidates some of this week’s decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If February extends this week’s decline, psychological support crossing at 35.00 is the next downside target. Closes above the 20 day moving average crossing at 45.09 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 42.26. Second resistance is the 20 day moving average crossing at 45.09. First support is Wednesday’s low crossing at 35.13. Second support is psychological support crossing at 35.00.