WTI Crude Oil
The WTI Crude Oil market initially fell during the day on Wednesday, but found the $43 level below to be far too supportive to continue to fall from here. In fact, by the time the market closed, we ended up forming a hammer. In fact, I think at this point we will probably try to reach towards the bottom of the uptrend line, which is massively important as it was so supportive. At this point, if we rally from here I think that we will find exhaustion in that general vicinity that we can start selling. If you’re a short-term trader, it might be possible to go long but I have no interest in doing so myself. If we break down below the $43 level, I feel that the market will then reach towards the $40 handle given enough time.
Natural Gas
The natural gas markets fell initially during the day but turned around to form a relatively positive candle. The $2.75 level above has previously been support, and it should now find quite a bit of resistance above. An exhaustive candle would be a selling opportunity going forward, and as a result it’s very likely that the market should reach down to the $2.50 level below. I have no interest in buying, and even if we broke above the $2.75 level above, the $2.85 level above should be massively resistive. It’s not until we break above there that I would consider buying, and even then I believe that the $3 level is about as far as we can go. Even if we rally towards that area, if we turn around to show signs of exhaustion, that is a nice opportunity to start selling yet again. On the other hand, if we break down below the bottom of the candle during the day on Wednesday, this market should reach towards the $2.50 level below.
