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US OIL closed higher due to short covering on Thursday and the midrange close sets the stage for a steady to higher opening when Friday's night session begins. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible nearterm. If it extends the decline off September's high, the 75% retracement level of the JuneSeptember rally crossing is the next downside target. Closes above the 20day moving average crossing would confirm that a shortterm low has been posted.

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