WTI Crude Oil
The WTI Crude Well market rose slightly during the course of the session on Thursday, but quite frankly it wasn’t that impressive. As you can see on the chart, I have a descending channel at this moment, and I believe that the market will continue to follow it overall. That being said, we could get a bit of a rally but I also expect that the $47 level will continue to offer bearish pressure. In fact, I have no interest in buying this market until we either get a longer-term buy signal, or break above the $50 level. Until then, I’m simply looking for exhaustion to start selling as the US dollar continues to strengthen overall, and of course demand concerns have to be in the forefront of trader’s minds at this point in time.
Natural Gas
Natural gas markets did very little during the day, essentially forming a neutral but slightly bearish candle. We are sitting on top of the $2.70 level, an area that of course has a certain amount of psychological significance and of course has been resistive in the past as well as supportive. In other words, a bounce from here certainly is not out of the question. However, if we break down from here think we go to the $2.60 level after that. I do not have any interest in selling this market right now although I do believe eventually natural gas becomes a screaming sell.
At this point, I believe that the buyers are still very much in control, and we are simply trying to build up momentum to make another attack at the $3 handle. That of course is a large, round, psychologically significant number that will cause issues. Having said that, it is far too enticing for buyers to ignore. It is not until we break down below the $2.50 level that I think we will turn around for a longer-term move lower.
