WTI Crude Oil
The WTI Crude Oil market rally during the day on Thursday, as the building inventories was less than expected. However, the market looks like it is still going to struggle with the $55 level. That resistance should continue to be a problem in this market, and I believe that as soon as we break above the $55 level that you can start buying this market. If we can go back and forth in the meantime, I think that short-term traders will continue to take advantage. Longer-term, I still believe in the bearish picture, because quite frankly the oversupply is getting out of control. However, you have to follow what the market does, not what it should do.
Natural Gas
Natural gas markets tried to rally during the session on Thursday, but turned around to form a very bearish looking candle. I believe that every time this market tries to rally, it’s likely that we will sell off. The $2.75 level above should continue to be massive resistance, so having said that I think it’s only a matter of time before we breakdown below the $2.5 level. I do think that we need to build up momentum because we are so massively oversold, so given enough time I think it’s a matter of time before the markets find themselves breaking down massively. Given enough time, I have no interest in buying this market, at least not until we break well above the $3 level, which is something that I don’t see happening anytime soon. In fact, I believe that the $2 level will continue to be a target the longer-term traders are aiming for.
The temperatures are very warm in the United States right now, and continue to be. That of course really destroys the demand, and of course destroys the pricing power.
