By Jim Wyckoff
December crude oil closed lower on Wednesday as it extends the decline off September's high. The low-range close sets the stage for a steady to lower opening when Thursday's night session begins. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term.

If December extends the decline off September's high, the 75% retracement level of the June-September rally crossing at 84.64 is the next downside target. Closes above the 20-day moving average crossing at 91.05 would confirm that a short-term low has been posted. First resistance is the 20-day moving average crossing at 91.05. Second resistance is last Friday's high crossing at 93.49. First support is the 75% retracement level of the June-September rally crossing at 84.64. Second support is the 87% retracement level of the June-September rally crossing at 81.89.

(Courtesy: TraderPlanet)