February crude oil closed sharply higher on Wednesday and spiked above the 20 day moving average crossing at 43.52. The end of year rally was triggered by ideas that the worst of the decline in oil demand is now behind us. Today’s high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI have turned bullish hinting that a short term low might be in or is near. Closes above the reaction high crossing at 52.95 are needed to confirm that a short term low has been posted. If February extends this year’s decline, support crossing at 35.00 is the next downside target. First resistance is today’s high crossing at 45.54. Second resistance is the reaction high crossing at 52.95. First support is last Wednesday’s low crossing at 35.13. Second support is psychological support crossing at 35.00.