August crude oil closed sharply lower on Thursday as it extended this week’s decline. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning bearish signaling that sideways to lower prices are possible near-term.

If August renews the decline off June’s high, the 38% retracement level of this spring’s rally crossing at 62.25 is the next downside target. Closes above June’s high crossing at 73.90 are needed to renew this spring’s rally. First resistance is the 20-day moving average crossing at 70.28. Second resistance is Tuesday’s high crossing at 73.38. First support is today’s low crossing at 66.50. Second support is last Tuesday’s low crossing at 66.37.