Crude oil was higher overnight trading above the 20 day moving average crossing at 70.27 as it extended this week’s rebound. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.
Closes above the 20 day moving average crossing at 70.32 are needed to confirm that a short term low has been posted.
If July renews Monday’s decline, the 38% retracement of this spring’s rally crossing at 62.25 is the next downside target.
Friday’s Pivot point, our line in the sand is 69.82
First resistance is the overnight high crossing at 71.29.
Second resistance is the reaction high crossing at 73.90.
First support is Tuesday’s low crossing at 66.37.
Second support is the 38% retracement level at 62.25.
