WTI Crude Oil
The WTI Crude Oil market initially fell during the course of the session on Wednesday, but found enough support just above the $30 level to turn things around and form a relatively supportive looking candle. However, there is a massive amount of resistance at the $34 handle, so it’s very likely that the market will find sellers sooner rather than later. Because of this, I am simply looking for an exhaustive candle to start selling at that point in time. I would also be more than willing to sell this market below the $30 level as it would be breaking support at that point in time.
Ultimately, this is a market that should continue to go lower, probably reaching towards the $26 level, and possibly even lower than that given enough time. I have no real interest in buying this market at this point in time, and don’t see things changing.
Natural Gas
The natural gas markets did very little during the course of the day on Wednesday, as we continue to see this market simply hover near the bottom again. Ultimately, this is a market that should have plenty of sellers overall, and as the downward pressure continues going forward, and with that being the case it’s likely that we will break down to fresh, new lows. Any rally at this point in time should be a selling opportunity, as there is more than enough supply for any type of demand that could come through at this point in time.
Short-term rallies will be nice opportunities to short this market again and again, and although I am very negative of this market, I also recognize that it will be short-term trading that takes control of the overall attitude and movement of this marketplace going forward. This downtrend could continue for ages.
