June crude oil closed higher on Friday as it extends the rally off April's low. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term.
If June extends the rally, January's high crossing at 59.66 is the next upside target. Closes below the 20-day moving average crossing at 52.20 are needed to confirm that a short-term top has been posted.
First resistance is today's high crossing at 58.67. Second resistance is January's high crossing at 59.66. First support is the 10-day moving average crossing at 53.50. Second support is the 20-day moving average crossing at 52.20.
Recommendations
Hang on to your KNM, SAAG, RAMUNIA, RANHILL, SAPCRES or any stocks that smells of Oil & Gas. This is the sector for profits building NOT taking.
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