Market Commentary

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NYMEX CRUDE OIL

June crude oil posted an inside day with a lower close on Tuesday as it consolidated some of the rally off last Wednesday's low. The mid-range close sets the stage for a steady opening when Wednesday's night session begins. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. If June extends renews the rally off April's low, April's high crossing at 98.06 is the next upside target. Closes below last Wednesday's low crossing at 92.13 would confirm that a short-term top has been posted. First resistance is May's high crossing at 97.17. Second resistance is April's high crossing at 98.06. First support is last Wednesday's low crossing at 92.13. Second support is the reaction low crossing at 90.11.

June heating oil posted an inside day with a lower close on Tuesday due to profit taking. The low-range close sets the stage for a steady to lower opening when Wednesday's night session begins trading. Stochastics and the RSI are diverging but are bullish signaling that sideways to higher prices are possible near-term. If June extends the rally off April's low, the 50% retracement level of the February-April decline crossing at 298.06 is the next upside target. Closes below last Wednesday's low crossing at 281.93 are needed to confirm that a top has been posted. First resistance is the 50% retracement level of the February-April decline crossing at 298.06. Second resistance is 62% retracement level of the February-April decline crossing at 304.20. First support is last Wednesday's low crossing at 281.93. Second support is the reaction low crossing at 275.97.

June unleaded gas closed lower on Tuesday and below the 10-day moving average crossing at 286.60 thereby increasing the odds that a short-term top might be in or is near. The low-range close sets the stage for a steady to lower opening when Wednesday's night session begins trading. Stochastics and the RSI are overbought, diverging but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If June extends the rally off May's low, the 50% retracement level of the February-May decline crossing at 296.45 is the next upside target. Closes below the 20-day moving average crossing at 282.85 would signal that a low has been posted. First resistance is last Friday's high crossing at 292.76. Second resistance is 50% retracement level of the February-May decline crossing at 296.67. First support is the 20-day moving average crossing at 283.48. Second support is last Wednesday's low crossing at 277.04.

June Henry natural gas closed higher on Tuesday and above the 20-day moving average crossing at 4.092 confirming that a low has been posted. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If June extends the rally off last week's low, the reaction high crossing at 4.444 is the next upside target. If June renews the decline off May's high, the 50% retracement level of this year's rally crossing at 3.831 is the next downside target. First resistance is today's high crossing at 4.210. Second resistance is May's high crossing at 4.444. First support is the 50% retracement level of this year's rally crossing at 3.831. Second support is the 62% retracement level of this year's rally crossing at 3.683.