January Crude Oil:Crude prices fell for a third consecutive day on Monday hitting a low at 9524 before rebounding to clip losses to just 49 cents, closing at 9692. Prices maintained the 20-day moving average and ended in a Hammer Candlestick, an indication the 3-day slide is done. That said, we have a mild Bull bias up to R2 Resistance, turning Bullish above 10015. Turnover is seen below 9665 Pivot for retesting of the 9500 to 9465 range.

Heading into the pit session, as of 7am, prices are called to Gap in higher offering Long trade set-ups on dips against 9786-9750 S1 and 9692-9665 S2 Support zones. Stops are suggested to be placed 16 cents below each respective zone. Near term targets are 9835-9860 R1 and 9985-10015 R2. Trade above 10015 renews strength gunning for Bull targets at 10100 R3 to 10200 R4. Trade and/or a close above 10200 calls for a run to the extended target at 10290-10337 R5 (Nov High) and higher in the coming days.

On the downside, sellers can short scalp in the 9835-9860 R1 and the 9985-10015 R2 Resistance zones, Stops suggested 16 cents above each respective zone. Failures at either Resistance point alerts for a pullback to the S1 to S2 Buy Zone where all shorts should scale out. The downside break of 9665 Pivot reverses momentum to the Bears bringing all lower targets in play at 9600-9585 S3 (20-Day MA) to 9524-9500 S4 and 9465 S5.

Daily Chart:

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