WTI Crude Oil
The WTI Crude Oil market rose during the course of the day, testing the $42 level. With this being the case, the market should continue to gain from here, but mainly for short-term trades. After all, there is a massive amount of resistance between here and the $44 level, and of course we have a lot of concerns when it comes to the markets at the moment. We have Crude Oil Inventory numbers coming out today, and as a result we could get a bit of volatility due to that. Also, we are only a couple of days from the meeting in Doha, Qatar - which is a lot of the reason that people are starting to buy crude oil, trying to essentially “front run” any production freeze announcement, so having said that I think that the market will sooner or later set itself up for either a “sell the news” type of situation, or perhaps a major disappointment.
Natural Gas
The natural gas markets rose during the course of the day on Tuesday, as we continue to consolidate between the $1.90 level on the bottom, and of course the area just above the $2.00 level. With this, an exhaustive candle would be reason enough to start selling, or just some type of impulsive candle to the downside. At this point in time, I have no interest whatsoever in buying this market as we are leaving the busy season when it comes to demand, and of course we have to worry about whether or not there is even going to be enough demand in the first place, as the supply is massive.
Economic activity may or may not be strong enough to constitute a bullish market anyway, so this point in time is simply waiting to be told when to sell. I get that from either of the above scenarios.
