WTI Crude Oil
The WTI Crude Oil market went back and forth during the course of the session on Thursday, as we tested the $46 level. This is an area that has caused quite a bit of noise in the past, so pullback from here will more than likely be a buying opportunity. I believe that there is quite a bit of support just below, but there is a lot of noise above that could cause resistance. This will be choppiness, and as a result the market will be more or less one that you have to trade off of short-term charts. I believe that the $42 level is essentially the “floor” in the market at the moment, so I have no interest in shorting at this point, but I also recognize that there’s a lot of trouble to work through.
Natural Gas
The natural gas markets fell significantly during the course of the session on Thursday, wiping out most of the gains from the Wednesday session. Ultimately, this is a market that should continue to show a lot of traders plenty of opportunities of both buying and selling. However, the longer-term charts are very negative, but I also recognize that recently drillers have stepped away from the markets and fields, so having said that this market will still have reasons to go higher, but also the longer-term issue of demand will continue to weigh upon natural gas. With this, I still prefer to sell this market over the longer term, but right now it’s probably best to step away as this market will continue to bounce around just above the $2 handle. If we can break below the $2 handle though, I am more than willing to start selling as we should then go to the $1.90 level below there. A break below there would be a presumption the longer-term downtrend in my opinion and quite welcome.
