February crude oil was lower overnight as it consolidates some of Monday’s rally. Stochastics and the RSI are oversold but are turning bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 43.22 are needed to confirm that a short term low has been posted. If February extends last week’s decline, psychological support crossing at 35.00 is the next downside target. First resistance is the 10 day moving average crossing at 39.69. Second resistance is the 20 day moving average crossing at 43.22. First support is last Wednesday’s low crossing at 35.13. Second support is psychological support crossing at 35.00.
Uncategorized