WTI Crude Oil
The WTI Crude Oil market fell slightly during the day on Wednesday, giving back all of the gains from Tuesday. However, this is just a slight blip on the radar, as we continue to see bullish pressure overall. I think that the market is all but determined at this point that we are in fact going to reach towards the $50 level. So with that being the case, short-term traders will more than likely continue to push the issue, and at this point in time I think almost everybody, sellers included, are willing to concede that $50 will be hit.
That’s not to say that is going to be easy going forward, I believe that the $50 level could be rather significant in its psychological significance when it comes to resistance. However, at this point in time I think that pullbacks will more than likely be used to try to build up enough momentum to finally break above that level. I think at this point in time the $46 level will be the floor.
Natural Gas
The natural gas markets fell again during the day on Wednesday, testing the $2 level. That’s an area that of course can cause quite a bit of psychological reaction, so I feel that the market could bounce slightly from here, but quite frankly I do think that we are going to break down based upon the fact that we closed at the very bottom of the range for the day. If we can break down below the bottom of the range for Wednesday, I don’t see any reason why we don’t go down to the $1.90 level next. After all, natural gas is in a longer-term downtrend, despite what we’ve seen over the last couple of months. With this in mind, I’ve always preferred selling anyway, and the fact that we broke down below a short-term uptrend line during the day does nothing to dissuade me from selling either.
