WTI Crude Oil
The WTI Crude Oil market broke higher during the day on Wednesday as the inventory figures came out about as expected. We have broken above the top of a shooting star from the previous session, but I also see a lot of noise between the $49 level and the $50 level above there. Given enough time, I believe that and exhaustive candle is reason enough to start selling, and I think it’s good to be very difficult to break above the $50 handle. I believe that the market continues to chop around and that it’s only a matter of time before sellers get involved. If we did break above the $50 level, then I think the market could continue to go higher. Volatility is without a doubt the one thing you can probably count on.
Natural Gas
The natural gas markets went back and forth during the day on Wednesday, forming a bit of a neutral candle. The natural gas inventory figures come out today, so that of course could cause quite a bit of volatility. I believe that if we rally from here, the $3 level above should be massively resistive. And exhaustive candle would be a selling opportunity, just as a break below the bottom of the candle from the daily session on Wednesday would be. I think that the $2.85 level underneath should be supportive, but I think that we will eventually break below that level. I recognize that there is a lot of resistance above the $3 level, extending to the $3.10 percent level. I have no interest in buying this market, and I look at any rally as an opportunity to start selling yet again. Today may be volatile, but it could offer a nice opportunity.
