WTI Crude Oil
The WTI Crude Oil market initially tried to fall during the day on Thursday, but as you can see we turn right back around to form a little bit of a hammer. We also had a shooting star on Thursday, so having said that looks as if the market is going to continue to be very volatile in this area. I personally see quite a bit of resistance all the way to the $50 level, so I think that even if we break higher it’s going to be very difficult to continue the upward momentum without having several pullbacks. I believe that this is a market that’s going to be difficult to trade in general, at least in the short-term. If we do fall from here, there is quite a bit of support all the way down to the $43 level so really at this point in time it’s going to be about scalping the market more than anything else.
Natural Gas
Natural gas markets initially tried to rally on Thursday but turned right back around as we continue to see quite a bit of bearishness every time this market tries to break out to the upside. Having said that though, there is still plenty of support just below so really at this point in time I feel that we will more than likely continue to see a lot of choppiness and volatility, meaning that we will more than likely be range trading for the foreseeable future.
I would need to see some type of longer-term signal or a break above the $2.20 level to start buying, just as I would need to see this market break down below the $2 level to start selling with any longer-term aspirations in mind. In the meantime, I believe we just simply have to buy and sell as you get towards the outer reaches of the range.
