WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the session on Tuesday, but found enough resistance at the 200-day exponential moving average to turn around and form a shooting star. Ultimately, the market looks as if it is trying to turn around but we get the Crude Oil Inventories announcement coming out today, which of course can change everything. I believe that we should continue to see bearish pressure, as we have bounced too far in the short amount of time that the buyers started to take over again. Because of this, I believe that we have a lot of built-up negative energy just waiting to be expressed. I think that the $50 level above is massively resistive as well.
Natural Gas
Natural gas markets have fallen rather significantly during the day, slicing through the $3.25 level. As you can see on the chart, I have drawn a rising wedge, which is typically a very negative sign if he gets triggered to the downside. I think if we can break down below the $3.15 level, that will be very negative and the market should then go down to the 3.05 level, which has been the beginning of the gap lately and will more than likely be very attractive to the sellers. Alternately, if we break above the $3.25 level, then the market should continue to go higher. I believe that today could be a very important day, and therefore it’s likely that the market will continue to see quite a bit of volatility, but if we get an impulsive move, I’m willing to follow it. Expect a lot of choppiness, but that will lend itself to trading CFDs, and not futures markets as the market can get very expensive very quickly if you are wrong.
