WTI Crude Oil
The WTI Crude Well market fell during the course of the day on Wednesday, falling down towards the $45 level yet again. This is a market that I recently considered to be in a descending triangle that has broken down, and as a result I have been bearish for a moment. Because of this, I feel that the market is ready to continue going lower, perhaps reaching towards the $40 level. Any rally at this point in time is a selling opportunity as far as I can see, and signs of exhaustion will be used for me to short this market again and again.
There is quite a bit of bearish pressure in this market not only because of the strengthening US dollar, but the fact that the supply is starting to pick back up as the Canadian and Nigerian supplies have increased, I believe that we will continue to see bearish pressure. On top of that, I think that it’s only a matter of time before lack of demand starts to rear its ugly head again.
Natural Gas
The natural gas markets went back and forth during the course of the day on Wednesday, forming a relatively neutral candle. The $2.70 level below continues to be supportive, and a break above the top of the range for the day will more than likely end up being a buying opportunity. At this point, the natural gas markets are still very bullish, and the $3 level seems to be the target. Alternately, if we do fall from here I feel that there is plenty of support near the $2.60 level, and most certainly the $2.50 level. Even though I feel that this market will fall significantly during the course of the longer-term, at this moment in time it seems to be that the buyers are without a doubt who is pushing the market around at the moment. With this, I don’t have any interest in selling, at least not quite yet.
