WTI Crude Oil
The WTI Crude oil market initially bounced during the day on Monday, but found quite a bit of resistance at the $46 level, which had been so supportive previously and what I have drawn as a bit of a descending triangle. Yes, it’s not the best triangle, but most certainly the $46 level has had quite a bit of interest by the market, so having said that it makes sense that we turn right back around and fell. We have now started to roll over and I feel that we are reaching towards the $43 level next. If we can break down below the $43 level, we should then reach down to the $40 level in my estimation as this market most certainly is getting a bit heavy at this point.
Natural Gas
The natural gas markets initially tried to rally on Monday but turned rain back around to break down and reach towards the $2.70 level. This is a very bearish candle, so quite frankly it does look like we may have to grind a little bit lower. I still think there’s plenty of support just below though, and as a result I’m looking for a supportive candle in order to go long. The $2.50 level below is essentially the “line in the sand” for the overall uptrend that we have seen recently, so having said that I think that the natural gas markets are simple trying to build up enough momentum to finally break above the $3 handle. I don’t know if we will ever be able to do that, we most certainly will have to build up momentum in order to try.
This is a market that longer-term I think has a lot of problems, but at this point in time it looks as if it is still preferred by the bullish. With this, I would expect a bounce sooner rather than later.
