WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the course of the day on Friday, but struggled at the $34 level. Because of this, the market ended up turning back around and forming a shooting star. The shooting star of course was preceded by a hammer, so this shows just how much volatility there is in this market at the moment. However, if we can break down below the bottom of the hammer from the Thursday session, I would not hesitate to start selling this market. I would also sell this market all the way up to the $36 handle, as I believe there is a massive amount of resistance above. Supply continues to outweigh demand, and of course the US dollar is strengthening. I have no interest whatsoever in buying this market anytime soon, and believe that the sellers will continue to have their way with this particular market.
Natural Gas
The natural gas markets rose during the course of the day on Friday, and as a result it looks like we are breaking above a significant downtrend line. Ultimately, the $2.60 level above should be massively resistive though, so it is going to be a difficult fight higher. If we get a resistive candle between here and there, that could be a selling opportunity as this market is still in a bearish trend, but it looks like the buyers could have their way with this market for the time being, meaning that short-term buying opportunities could present themselves on short-term pullbacks, at least until we get to the aforementioned $2.60 level.
A break above there could be a move to the $3 level waiting to happen. On the other hand, if we do fall below here, the market will have to deal with the consolidation area that we have been stuck in for some time.
