Crude oil is overdue for a corrective pullback. Monday's failed swing pattern just may mark the beginning of the correction after Crude traded to a fresh 15-month high, but failed to find any new buyers and closed sharply lower. A reversal at this juncture could trigger a downside correction, possibly to 79.25, as it approaches the January 13 reversal swing date, where it would form a bullish 'setup" for a new long entry.
If currently long, this would be a good place to tighten stops or close the long position.
February crude oil was lower due to profit taking overnight as it consolidates some of the rally off December's low. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near.
Closes below the 10-day moving average crossing at 81.37 would signal that a short-term top has been posted. If February extends this rally, the 38% retracement level of the 2008-decline crossing at 84.82 is the next upside target. First resistance is Monday's high crossing at 83.95. Second resistance is the 38% retracement level of the 2008-decline crossing at 84.82.
First support is the 10-day moving average crossing at 81.37. Second support is the 20-day moving average crossing at 78.13.
NOTE
Kindly be informed the closing prices for these commodities will not be the same as the prices indicated as the in charts displayed.
These articles were drafted & published as the commodities were electronically traded during the time of publications.
Please check their respective prices with EOD quotes / charts.
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