WTI Crude Oil
The WTI Crude Oil market initially fell during the course of the session on Monday, but turned around to form a hammer. With this being the case, it’s very likely that the market has rallied enough to perhaps give us a short-term rally that we can sell. After all, we have broken down below the significant uptrend line that had been keeping the market up, and with that I believe that it’s only a matter time before an exhaustive candle that we can short appears. Some type of exhaustive candle or a break down below the $43 level is exactly what I’m looking for in order to start selling again. I have no interest whatsoever in buying this market as it is so strong.
Natural Gas
The natural gas markets gapped higher at the open on Monday, but then turned around to fill that gap. Ultimately, this is a market that seems to have quite a bit of support near the $2.75 level, which has been massively supportive for a while now. Because of this, I feel that any type of rally from here should find exhaustive enough action to turn things back around and perhaps give us an opportunity to sell the natural gas markets at higher levels. I believe that the market will then simply trying to break down below this massive support barrier that has been so reliable. A break down below there should send this market down towards the $2.60 level, an area that has been massively supportive in the past as well. I have no interest whatsoever in buying this market as there is so much in the way of negative pressure and of course there is the massive problem with the oversupply. I believe that the oversupply issue will only get worse from here, so therefore the longer-term downward trend should continue.
