WTI Crude Oil
The WTI Crude Oil market initially fell during the day on Thursday, but then watched itself above the $50 level. With this being the case, it looks as if the market is going to try to break out longer-term, but we have the jobs number coming out of America today. That of course can have a massive effect on this market, and it would not be a real stretch to imagine that this market is a bit overbought. With this, I suspect that any type of pullbacks at this point in time should be buying opportunities as this market continues to react positively to the OPEC announcement that the members were going to cut production. With this being the case, I think that it’s impossible to sell this market, and any pullback at this point in time should be a buying opportunity.
Natural Gas
The natural gas markets went back and forth during the day on Thursday, but found enough support right near the $3 level to turn things back around and form a bit of a hammer. A break above the top of the hammer would be a bullish sign, and as a result it’s likely that the market would then reach towards the next longer-term target, but $3.40 level. If we pullback from here I don’t have any interest in selling at this point, at least not until we break down below the uptrend line that I have marked on the chart. I think the pullbacks will end up being buying opportunities, especially if we can find signs of support after a knee-jerk reaction to the jobs number. It’s not until we break down below that uptrend line that I think that the sellers will become truly aggressive, meaning that I’m looking at roughly 2.854 an opportunity to short.
