US oil closed lower due to profit taking on Thursday as it consolidated some of this summer's rally. The low range close sets the stage for a steady to lower opening when Friday's night session begins. Stochastics and the RSI are diverging but remain neutral to bullish signalling that sideways to higher prices are possible near term. If it extends this summer's rally, weekly resistance crossing is the next upside target. Closes below the 20day moving average crossing would confirm that a short term top has been posted.