February crude oil was lower overnight as it extends this month’s decline.
Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.
If February extends this month’s decline, December’s low crossing at $35.13 is the next downside target.
Closes above the 10 day moving average crossing at $42.65 would signal that a short term low has likely been posted.
Closes above last Tuesday’s high crossing at $50.47 are needed to renew the rally off December’s low.
First resistance is the 10 day moving average crossing at $42.65.
Second resistance is last Tuesday’s high crossing at $50.47.
First support is the overnight low crossing at $36.10.
Second support is December’s low crossing at $35.13.
Do to the importance of the movement of the U.S. dollar to the price of crude will now include commentary on the dollar in most post here….
The March Dollar was higher due to short covering overnight as it extends the rebound off last Thursday’s low. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above last Tuesday’s high crossing at 84.98 are needed to renew the rally off December’s low. Multiple closes below the 20 day moving average crossing at 82.42 would confirm that the corrective rally off December’s low has come to an end. First resistance is last Tuesday’s high crossing at 84.98. Second resistance is broken support crossing at 85.34. First support is last Thursday’s low crossing at 81.99. Second support is the reaction low crossing at 80.43.
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