February crude oil was steady to slightly higher overnight due to short covering as it consolidates some of Wednesday’s decline.

Stochastics and the RSI are turning neutral hinting that a short term top might be in or is near.

If February extends the rally off December’s low, the reaction high crossing at 52.95 is the next upside target.

Closes below last Wednesday’s low crossing at 36.94 would temper the near-term friendly outlook in the market.

First resistance is Tuesday’s high crossing at 50.47.

Second resistance is the reaction high crossing at 52.95.

First support is the 10 day moving average crossing at 42.63.

Second support is Wednesday’s low crossing at 36.94.

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