WTI Crude Oil
The WTI Crude Oil market initially rallied during the day on Thursday but found the area above the $38 level to be resistive enough to turn the market back around. Ultimately though, we did bounce a bit after selling off, so this is more or less a neutral candle. If we can break down below the bottom of the range for the session on Thursday though, we would be sellers as the market should continue to go much lower. The $34 level below should be a decent target, but it will also be a supportive level given enough time. I think that it’s only a matter of time before we continue lower than that the way things event going, but recognize that there is a lot of volatility between here and there.
Natural Gas
The natural gas markets had a very strong session on Thursday, breaking above the $2 level at one point. However, it’s not until we break the top of the shooting star from the Monday session that I’d be willing to start going long. I think this is only short-term rally though, so this point in time it’s only matter of time before we get a resistive candle that we can start selling. The supply of course far outweighs the demand and that’s going to be the way going forward for the foreseeable future.
I don’t have the resistive candle that am looking for yet, so I am simply waiting to see that appear on the daily chart. At the moment, it’s obvious that the markets still have a decent amount of bullish pressure underneath, so it’s probably best to simply be on the sidelines at this moment in time as there are no real signs of weakness but of course we have such a longer-term downtrend that we have to compete with.
