By: DailyForex.com
WTI Crude Oil
The WTI Crude Oil market initially fell during the day on Thursday, but found enough support near the $31 level to turn things back around. At this point in time, it looks like we are trying to reach the $34 handle now. This is an area that has been massively resistive recently, and as a result I think that sooner or later the market will turn around. On top of that, I see quite a bit of resistance at the $34 level, the $36 level, and of course the $38 level. On any sign of exhaustion, I am more than willing to sell this market off as it is a longer-term downtrend and of course there is a massive amount of supply that cannot be taken out by the demand at this point in time.
Natural Gas
The natural gas markets initially tried to rally during the course of the day on Thursday, but turned back around and fell well below the $1.80 level. Because of this, we are ready to try the lows again, which is somewhere near the 1.70 level. If we can break down below there, then the bottom will fall out of the natural gas markets and we should continue to go much lower. Ultimately, rallies should continue to bring selling as well, and at this point in time I don’t see a situation where I can start buying this market anytime soon.
In fact, I don’t even have a longer-term target to the downside because I think we could fall much farther than ever anticipated. With this, I think that the easy money shorting natural gas has already been made obviously, but short-term selling opportunities will present themselves again and again, offering quite a bit of opportunity in this market as we go forward. Sell and sell again!
