WTI Crude Oil
The WTI Crude Oil market went back and forth during the course of the session on Tuesday, as we continue to find quite a bit of momentum to the upside. However, we are getting close to some significant resistance and of course we have the inventory numbers coming out today as well. With this being the case, we have quite a bit of trouble above here and extending all the way to at least the $50 level just waiting to happen. If we can break down below the bottom of the candle for the day on Tuesday though, at that point in time I think we would continue to consolidate in this area and perhaps drop from current levels to the $45 level or so.
Natural Gas
The natural gas markets initially fell during the course of the session on Tuesday, but bounced enough to form a green candle. It looks as if the market is trying to reach towards the $3 level yet again, where I would expect to see a significant amount of resistance. If we can break above there though, I feel that the market would then reach higher, perhaps to be 3.10 level above, and then even higher to the $3.40 level after that. On the other hand, I do have an uptrend line that you have to pay attention to on this chart.
Because of this, I feel that if we can break down below that uptrend line, at that point in time I would become a seller as it would be a significant breakdown of upward momentum in a market that has been very strong for the last several months. I believe that longer-term this is a negative market, as the oversupply will continue but at this point in time it’s obvious that the buyers are very much in control when it comes to natural gas.
