WTI Crude Oil
The WTI Crude Oil market initially fell during the course of the session on Friday, but turned back around to form a nice-looking hammer. This means that we should continue to see buyers try to break out above, but there is a massive amount of resistance near the $49 level, and perhaps the $50 level above that. Ultimately, we break down below the bottom of the hammer, that would be a very negative sign as the market should then fall towards the $45 level. With this, I think that the market will continue to be very choppy so having said that it’s difficult to imagine placing a longer-term trade at this point in time.
Natural Gas
The natural gas markets fell during the course of the session on Friday, dipping down to the $2.90 level. With that being the case, the market should find support somewhere in this area, so having said that it’s likely that it will be difficult to short this market for any real length of time. I know that longer-term the fundamentals for the natural gas markets are fairly poor, but at this point in time it seems likely that the market will continue to be attractive for buyers, at least in the short-term. A break above the $3 level would be bullish as we should then reach towards the $3.10 level, which has been massively resistive.
I believe that if we break above there we should then go to the $3.40 level which has been very important on longer-term charts as we have seen quite a bit of action right around that area, and it was previously so massively supportive on the monthly chart. Nonetheless, I think we’re going to get another pop higher and then eventually this market will turn back around. Given enough time, I think you be able to go in either direction.
