WTI Crude Oil
The WTI Crude oil market rose during the course of the day on Tuesday, breaking above the top of the hammer from the previous session. That being the case, looks as if the WTI Crude Oil market continues to find buyers regardless of what goes on. The $42 level above is resistive, but if we can break above there we should then try to reach towards the $44 level. That being said, it does look like a bullish market but it is going to be choppy see you have to be willing to deal with that type of volatility. Ultimately, short-term buying opportunities will probably be about as good as it gets, as this market will continue to be one that scalpers are attracted to.
Natural Gas
The natural gas markets exploded to the upside, gaining 8% by the time it was all said and done. With that being the case, looks as if we are going to continue to try to go higher, with quite a bit of resistance running all the way to the $2.30 level. That being said, this is a market that sooner or later will find it's sellers. This is more or less a reaction to the oil markets, but quite frankly the demand simply is not going to be there until at least the winter of this year. Ultimately, the easiest play is to wait for an exhaustive candle that we can start selling, but at this point in time it I’m going to have to sit on the sidelines and be very patient.
The size of the candle certainly suggests that we are going to go higher, even though there is not much of a fundamental argument for natural gas prices rising for any real length of time. The oversupply and the natural gas market is still extraordinarily large, and shows no signs of abating anytime soon.
