Crude Oil Trades Higher On Positive Economic Outlook

Posted on Sunday, August 30, 2009
Filed under Crude Oil, Stochastics, US Dollar

Crude oil closed higher on Friday as it consolidates above the 20 day moving average crossing at 72.43. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. The mid range close sets the stage for a steady opening on Monday.

Closes below last Monday's low crossing at 67.42 would open the door for a larger degree decline into September. If October renews this month's rally, June's high crossing at 75.27 is the next upside target.

First resistance is Tuesday's high crossing at 75.00
Second resistance is June's high crossing at 75.27

First support is Thursday's low crossing at 69.83
Second support is last Monday's low crossing at 67.42

Natural gas closed lower on Friday as it extends this summer's decline. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold and are neutral to bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 3.641 are needed to confirm that a short term low has been posted.

If September extends this month's decline, monthly support crossing at 2.640 is the next downside target.

First resistance is the 10 day moving average crossing at 3.32
Second resistance is the 20 day moving average crossing at 3.64

First support is today's low crossing at 3.02
Second support is monthly support crossing at 2.64

The U.S. Dollar closed higher on Friday due to short covering while extending this month's trading range. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices are possible near term.

If September renews last week's decline, the reaction low crossing at 77.52 is the next downside target. Closes above last Monday's high crossing at 79.36 are needed to confirm that a short term low has been posted.

First resistance is Wednesday's high crossing at 78.89
Second resistance is last Monday's high crossing at 79.69

First support is last Friday's low crossing at 77.81
Second resistance is the reaction low crossing at 77.52