February crude oil was lower overnight due to profit taking as it consolidates some of Wednesday’s rally and is trading below the 20 day moving average crossing at 43.27. However, stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If February extends Wednesday’s rally, the reaction high crossing at 52.95 is the next upside target. Closes below Wednesday’s low crossing at 36.94 would temper the near term gains. First resistance is Wednesday’s high crossing at 45.54. Second resistance is the reaction high crossing at 52.95. First support is Wednesday’s low crossing at 36.94. Second support is December’s low crossing at 35.13.