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Maybe oil will still have some gas left today
Mar 20, 2009 02:13AM
April crude oil closed higher on Thursday as it extended this week's rally and closed above resistance crossing at $50.88.
The high range close sets the stage for a steady to higher opening on Friday. And closing above $50.88 on Friday would signal that a near term low has been set. We are calling for the SP 500 to open lower on Friday with a possible end to the recent rally. This could put the crude oil bull's in the position for some very heavy lifting on Friday.
Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.
If April extends this month's rally, January's high crossing at $56.86 is the next upside target.
Closes below the 20 day moving average crossing at $44.55 would temper the near-term friendly outlook in the market.
First resistance is today's high crossing at $52.25.
Second resistance is the reaction's high crossing at $56.86.
First support is the 10 day moving average crossing at $46.94.
Second support is the 20 day moving average crossing at $44.55.