WTI Crude Oil
The WTI Crude Oil market rallied again during the day on Monday, in a very quiet session due to the Presidents Day holiday in America, relying solely on electronic trading around the world. Looking at the uptrend line on the daily chart, you can see that we are coming close to retesting it, and I think it’s very likely that we will see selling pressure soon. It we not only have the uptrend line above, but we also have the previous support that is found near the $63 level, and of course the 20 SMA in the Bollinger Bands indicator. I believe that after the recent selloff, we may have seen the highs for the year already. There is a massive oversupply of crude oil, and I think that’s only going to get worse. However, the shrinking US dollar does help. I’m looking for exhaustive candle near the $63 level that I can start selling.
Natural gas markets initially tried to rally on Monday, but as you can see turned around and fell yet again. It’s likely that the market is going to continue to grind lower, but the key word here is “grind.” The market has gotten ahead of itself, and I believe that there is a massive amount of support near the $2.50 level. Ultimately, I think the best way to look at this market is a market that you can sell later. If that’s the case, it’s likely that the rallies will attract plenty of sellers out there, and I believe that currently the $3 level is going to be the “ceiling” in the market. However, I’d be surprised if we even get that far. Stay tuned here at Daily Forex, I’ll keep you abreast as to what I am doing next, but right now I’m on the sidelines.