WTI Crude Oil
The WTI Crude Oil markets fell during the day on Friday, as we had a significant bearish tone to the market. This is a market that has been struggling back and forth as the market participants try to suss out whether or not the oversupply is going to be an issue. I personally believe that it will, and that every time this market rallies, you have to believe that the sellers are looking to get involved. The negative candle informed on Friday suggests that we are trying to close the gap that formed on Monday, and as a result I believe it’s only a matter of time before you have to start selling on signs of exhaustion off of short-term charts. I have no interest in buying this market.
Natural Gas
Natural gas markets had a positive session on Friday, as the colder weather has shown up in the northeastern part of the United States. The $3.10 level above has been resistive, so it be interesting see whether or not we can break above here. I also find it interesting due to the fact that we are overextended, and of course we are touching the bottom of the previous uptrend line which should now be resistive. On a bit on the sidelines when it comes to this market, because quite frankly I feel that it’s only a matter time before we turn right back around. After all, the market has collapsed several times after trying to rally, and with that being the case it’s likely that the sellers will continue to be very interested. The $3 level below could be supportive, but if we break down below there I think that the market will fall apart yet again. Either way, I think you can expect a very volatile market regardless what happens.
