WTI Crude Oil
The WTI Crude Oil market fell initially during the day on Thursday, but found enough bullish pressure to turn around and show signs of strength. Because of this, I think we’re going to test the $54 level again but getting above there might be a bit of a struggle. After all, we continue to see resistance all the way to the $55 level, so this market should continue to be choppy above current levels, so I’m waiting to see whether we get some type of exhaustive candle that I can start selling. I have no interest in buying, at least not until we break above the $55 level, and on a daily close. Until then, I think the range bound conditions should continue.
The natural gas markets extended losses during the day on Thursday, as we continue to breakdown. Sliding below the $2.90 level is a very negative sign, and I feel that it’s only a matter of time before we reach towards the $2.75 level below. That’s not to say that we won’t rally from time to time, but those rallies should end up being selling opportunities in a market that is obviously very negative overall. I believe that if we rally from here we will more than likely find selling opportunities near the $3 handle. Because of this, I look at and exhaustive candle above as an excellent opportunity to take advantage of what has been a very strong and reliable downtrend.
Eventually, I believe that the market will break down below the $2.75 level, and extend losses down to the $2.60 level. Because of this, I have no interest in buying and believe that as long as you remain negative of this market, the profit should come. If we can break down below the $2.60 level, we could make fresh, new lows in significant ways.