Analysis

August crude oil closed higher on Monday as it extends the rally off June's low. The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If August extends the aforementioned rally, the 50-day moving average crossing at 59.56 is the next upside target. Closes below the 10-day moving average crossing at 54.34 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 58.22. Second resistance is the 50-day moving average crossing at 59.56. First support is June's low crossing at 50.60. Second support is the 75% retracement level of the December-April-rally crossing at 49.69.

August heating oil closed lower on Monday as it consolidated some of this month's rally. The low-range close sets the stage for a steady to lower opening when Tuesday's night trading session begins. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If August extends the rally off June's low, the 50-day moving average crossing at 198.65 is the next upside target. Closes below the 10-day moving average crossing at 184.92 are needed to confirm that a short-term top has been posted. First resistance is today's high crossing at 194.09. Second resistance is the 50-day moving average crossing at 198.65. First support is the 10-day moving average crossing at 184.92. Second support is the 75% retracement level of the December-April-rally crossing at 175.75.

August unleaded gas closed slightly lower on Monday as it consolidated some of the rally off June's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. The low-range close sets the stage for a steady to lower opening when Tuesday's night session begins trading. If August extends the rally off June's low, the 50-day moving average crossing at 186.75 is the next upside target. Closes below the 10-day moving average crossing at 172.71 would confirm that a short-term top has been posted. First resistance is today's high crossing at 185.66. Second resistance is the 50-day moving average crossing at 186.75. First support is the 62% retracement level of the December-April-rally crossing at 168.15. Second support is the 75% retracement level of the December-April-rally crossing at 159.94.

August Henry natural gas closed higher due to short covering on Monday as it consolidates some of the decline off March's high. The high-range close sets the stage for a steady to higher opening when Tuesday's night session begins trading. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near-term. Closes above the 20-day moving average crossing at 2.378 are needed to confirm that a short-term low has been posted. If August resumes this spring's decline, monthly support crossing at 2.029 is the next downside target. First resistance is the 20-day moving average crossing at 2.378. Second resistance is the 50-day moving average crossing at 2.542. First support is last-Thursday's low crossing at 2.134. Second support is monthly support crossing at 2.029.