WTI Crude Oil
The WTI Crude Oil market rose higher during the course of the session on Friday, as we continue to break higher. This market is now above the $36 level, and that’s a very bullish sign. However, the biggest problem that I see in this particular market is that longer-term US shale will come into play again. After all, the US show producers recently suggested that above $40 they are more than willing to flood the market as they can start to make money. It wasn’t that long ago that shale producers needed $80 a barrel in order to make a profit, so it appears that there will be a longer-term downward pressure on this market regardless. I’m simply looking for exhaustive candle in order to start selling, and as a result I’m fairly hesitant to buy this market even though it certainly looks positive all of a sudden.
Natural Gas
Natural gas markets bounced a bit during the course of the session on Friday, using the $1.60 level as support. However, this is a market that is very negative, and it is only a matter of time before the sellers get involved again. Quite frankly, anybody who’s trying to buy short-term bounces in this market gets the losses that they deserve. I feel that the $1.80 level above should be resistive, so I am waiting to see whether or not we get an exhaustive candle that I can start selling. I’m very patient with this trade, because this is a market that has a massive amount of bearish pressure in it, and it is only a matter of time before we get some type of sell off as the supply is simply far too strong for the demand. In fact, I don’t even have a scenario in which I'm willing to buy this market currently, and quite frankly I don’t foresee that happening anytime in the near future.
