TECHNICAL OUTLOOK >>> Crude Oil / Soybean Oil

CL May Down $0.47 >>> US$84.92 pb May crude oil closed lower on Friday 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 overbought and are turning bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 82.88 are needed to confirm that a short-term top has been posted.

The daily stochastics which have crossed over down is a bearish indication. Stochastics turning bearish at overbought levels will tend to support lower prices if support levels are broken. A positive signal for trend short-term was given on a close over the 9-bar moving average. The downside closing price reversal on the daily chart is somewhat negative when the market closed below the pivot swing number in a mildly negative setup.

If May renews the rally off February's low, the 50% retracement level of the 2008-2009-decline crossing at 97.31 is the next upside target.

First resistance is Tuesday's high crossing at 87.09.
Second resistance is the 50% retracement level of the 2008-2009-decline crossing at 97.31.

First support is the 10-day moving average crossing at 84.28.
Second support is the 20-day moving average crossing at 82.88.

Soybean oil closed up 12 pts. at 40.04.
May soybean oil closed higher on Friday as it extends the rally off March's low. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. If May extends this week's rally, March's high crossing at 41.02 is the next upside target. Closes below the 20-day moving average crossing at 39.29 would temper the near-term friendly outlook.

First resistance is today's high crossing at 40.48.
Second resistance is March's high crossing at 41.02.

First support is the 10-day moving average crossing at 39.33.
Second support is the 20-day moving average crossing at 39.29.

ZL maintains a LONG mindset on both these commodities looking forward.