WTI Crude Oil
The WTI Crude Oil markets rallied during the course of the session on Wednesday, testing the $50 level. By doing so, it looks as if the market is going to try to break out to the upside but we didn’t close above it. If we can break out above the most recent high, the market then will continue to go much higher. Ultimately, at this point in time it looks quite a bit like we are consolidating, so I feel that we very well could pull back towards the 50 day exponential moving average, which is shown as red on this chart. The market does look as if there is quite a bit of bullish pressure underneath though, so ultimately we could breakout. With this, I think that the short-term pullback could end up being more of a buying opportunity than anything else.
Natural Gas
The natural gas markets rose during the course of the session on Wednesday, but as you can see struggled as we get close to the $3 level. Because of this, it looks as if the market is going to continue to see quite a bit of volatility and upward pressure, but at this point in time I think we are going to pull back due to the fact that the shooting star is a very negative sign, and of course the $3.00 level is a psychologically significant barrier, and it will take quite a bit of momentum to break above that area.
This point in time, I think that the pullback will be a nice opportunity to build up momentum to the upside, and I think that we will more than likely reach down towards the $2.75 level, and then possibly the 2.60 level after that. Ultimately, I think this will be considered to be “value”, and buyers will of course be attracted to this market going forward as we have seen so much in the way of bullish pressure.
