Crude oil closed higher on Monday extending the rally off this month’s low. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are becoming overbought but remains bullish signaling that sideways to higher prices are possible near-term. 
If September extends today’s rally, the reaction high crossing at 74.25 is the next upside target. Closes below the 20-day moving average crossing at 64.94 would confirm that a short-term top has been posted.
First resistance is today’s high crossing at 68.99. Second resistance is the reaction high crossing at 74.25. First support is the 20-day moving average crossing at 64.94. Second support is the reaction low crossing at 63.76.
