WTI Crude Oil
The WTI Crude Oil market fell during the day on Monday, as we have finally exhausted a bit. This essentially makes the Friday candle a “hanging man”, and the fact that we have such a bearish candle suggests that we are going to fall to at least the $46 handle. So the short-term, I’m willing to sell this market again and reach towards $46. If we can break down below there, I feel that we will then test the $45 handle. However, at this point in time I have to assume that there is support at the $46 level that could turn things back around and force me to start buying again. Short-term though, looks like the sellers are in control.
Natural Gas
The natural gas markets rose during the course of the session on Monday, as we continue to go back and forth in this market. Ultimately though, I think there is far too much in the way of resistance above to continue going higher in the short-term. The $2.75 level above is massively important due to be in the middle of the consolidation, so I think that will be the “barrier” that we have to deal with. If we can find some type of exhaustive candle in order to start selling, I am more than willing to do so. I’m not necessarily excited about buying this market at the moment because I believe that it’s only a matter of time before the sellers returned. With that being the case, I am simply waiting a signal to start shorting.
We are getting towards the end of the summer, so some of the demand for natural gas in the northeastern United States will taper off. That of course will affect costs, and therefore I believe that it’s only matter time before we drop back to the $2.50 level.
