WTI Crude Oil
The WTI Crude Oil markets fell significantly out the open, gapping all the way down to the $38 level as the markets were reacting to the lack of a production freeze deal coming out of Qatar over the weekend. With this, the market fell as much as 7% in the beginning, but then spent the rest of the day gaining as the market turned quite around and ended up forming a massive hammer like candle. With this, the market should continue to go higher in the short-term. If we can break above the $40 level, the market should then reach towards the $42 level. Ultimately though, there are a lot of moving pieces in this market and you can count on volatility regardless of what happens next. Quite frankly, I’m willing to step away from this market for the time being.
Natural Gas
The natural gas markets rose slightly during the course of the day on Monday, as the area below the $1.90 level offered enough support to turn things around and form a positive candle. It looks as if the market is going to continue to bang around in this general vicinity, especially near the $2.00 region. I am simply waiting for an exhaustive candle in order to start selling again, and I have no interest whatsoever in buying this market. I believe that it is only a matter time for the sellers return, and with that being the case, it’s very likely that we will get an exhaustive candle that we can start selling again. In the meantime, I am simply sitting on the sidelines and waiting for some type of clear signal. An exhaustive candle of course is a nice selling opportunity, but I also believe that a break down below the low from the session on Monday would be reason enough to start selling as well. I have no interest whatsoever in buying.
