February crude oil closed lower on Friday as it extended Thursday’s breakout below the 10 day moving average crossing at $42.98.
Today’s low range close sets the stage for a steady opening on Monday.
The door is open for additional weakness and a possible test of last week’s low.
Closes below last Wednesday’s low crossing at $36.94 would temper the near term friendly outlook in the market.
Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term.
If February renews the rally off December’s low, the reaction high crossing at $52.95 is the next upside target.
First resistance is the 20 day moving average crossing at $43.34.
Second resistance is Tuesday’s high crossing at $50.47.
First support is today’s low crossing at $39.38.
Second support is last Wednesday’s low crossing at $36.94.
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