WTI Crude Oil
The WTI Crude Oil market had a very volatile session on Friday, trying to break above the $46 level, which was previously supportive at the bottom of the descending triangle. Now that we have broken down below that the ascending triangle, that is a very negative sign. In fact, we ended up forming a bit of a shooting star just below that descending triangle, suggesting that we have retested the previous support and now it shows quite a bit of resistance. A break down below the bottom of the candle should send this market looking for the $43 level, and perhaps even the $40 level below. I have no interest in buying this market, I believe that sooner or later any rally will find quite a bit of resistance.
Natural Gas
The natural gas markets rallied during the day on Friday, testing the $2.80 level. This market seems to be grinding sideways overall, as we have found quite a bit of support below at the $2.70 level. There is a lot of support just below, and as a result I believe that sooner or later we are going to break out to the upside as we are simply trying to build up enough momentum to continue going higher and perhaps even break above the $3.00 level. I believe that the $2.50 level below is the “floor” in this market, and as a result I have no interest in selling this market until we break down below that area on a daily close. Between now and then, I think pullbacks continue to offer value in a market that is clearly bullish at this point in time and attempting to break above the $3 level eventually.
With this, I think you’re going to have to be patient, but eventually you will find plenty of buying opportunities in a market that is extraordinarily strong at this point in time, and is showing no real signs of turning back around.
