WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the course of the day on Friday but turned back around as the $32 level offered far too much in the way of resistance. By doing so, it ended up forming a shooting star and it appears that the market is ready to continue to drift toward the $30 level. That being the case, I am short of this market and will continue to be so as it looks so bearish. I think that we will eventually break down below the $30 level and reach towards the $28 level, and then perhaps even lower than that. Rallies at this point in time will be selling opportunities off of short-term charts, and that keeps me on the short side of this market going forward as I have no scenario in which I’m willing to buy.
Natural Gas
The natural gas markets bounced significantly on Friday, using the $2 region as a bit of a springboard. That springboard ended up forming a very positive candle, which suggests that we could see a little bit of continuation. At this point though, and there is far too much noise between here and the $2.20 level to consider going long for any significant amount of time. I am simply going to wait to see whether or not we get a resistive candle above to start selling again. I ultimately feel that the market is one that will continue to try to break down to even lower levels, as the supply of natural gas is far too strong for demand at this point in time.
Given enough time, I would anticipate that the sellers will take complete control yet again. I have no idea where I would even begin to think about buying this particular commodity.
