February crude oil closed higher on Monday as it extended the rally off December’s low. Today’s high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If February extends today’s rally, the reaction high crossing at 52.95 is the next upside target. Closes above the reaction high crossing at 52.95 are needed to confirm that a short term low has been posted. Closes below last Wednesday’s low crossing at 36.94 would temper the near term friendly outlook in the market. First resistance is today’s high crossing at 49.28. Second resistance is the reaction high crossing at 52.95. First support is the 20 day moving average crossing at 43.65. Second support is the 10 day moving average crossing at 41.26.

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