WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the day on Thursday but found enough resistance above to turn the market around to form and exhaustive candle. That of course suggests that we are going to pull back and today being the jobs number in America of course also adds the possibility of serious volatility. Because of this, I am going to be a bit hesitant to place a trade, but I think if the recent consolidation is any indicator, we will more than likely reach down towards the $52 level. A break above the top of the shooting star, although bullish, still must deal with a lot of resistance all the way to the $55 handle. Because of this, I think more than likely will see some bearishness but volatility will without a doubt be the biggest feature.
Natural Gas
The natural gas markets fell a bit during the day on Thursday, but found enough support at the $3.12 reason to turn around to form a hammer. I believe there is a significantly supportive area at $3.10, so a breakdown below there once in this market looking for the $3 level next. Alternately, with this supportive candle would not surprise me at all the see this market reach towards the $3.25 handle above, which should be resistive. In the way, I think it’s going to be choppy but given enough time the markets will fall apart as the natural gas markets have major problems considering the overhang and the massive amount of supply that remains out there.
I’m a seller in general, and have no interest in buying this market. I believe that the rally is over, and every time we rally, as an exhaustive candle that I’m looking for that I can take advantage of higher prices.
