WTI Crude Oil
The WTI Crude Oil markets fell again during the course of the day on Friday, as we broke well below the $30 level at one point. We did bounce a bit towards the end of the day, but the fact that it was Friday and that today is Martin Luther King Jr.’s birthday probably had some people closing out positions. Because of that, I feel that any rally at this point in time is simply an invitation to start shorting this market yet again, as it is so soft. I think we are heading down to the $25 level given enough time.
I think that the $32 level will be massively resistive, and that short-term charts can be used in order to fade rallies that failed. A break below the bottom of the range for the Friday session is also reason enough to start selling, as it would be a simple continuation of the bearish pressure.
Natural Gas
Natural gas markets fell again during the course of the day on Friday, as we are now heading towards the $2.10 level. This is a market that has been very bearish for the longest time now, so it makes sense that we should continue the longer-term downtrend. With this, I feel that rally should continue to be selling opportunities, and that it’s only a matter of time before sellers get involved every time we do try to gain in value.
I believe that the market is heading to the $2.00 level next, and then possibly even lower than that. Given enough time, the $1.80 level below will more than likely be targeted as it was the recent “swing low” in this market. There is more than enough supply out there to meet demand, so it’s difficult to imagine a scenario in which the buyers turn it back around for the longer term.
