February crude oil closed higher on Tuesday due to short covering as it consolidated some of this week’s decline.
Today’s mid range close sets the stage for a steady opening on Wednesday.
However, the door is open for a possible test of December’s low crossing at $35.13.
Closes above the 10 day moving average crossing at $42.82 would confirm that a short term low has been posted.
Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.
First resistance is the 20 day moving average crossing at $42.15.
Second resistance is the 10 day moving average crossing at $42.82.
First support is today’s low crossing at $36.10. Second support is December’s low crossing at $35.13.
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