WTI Crude Oil
The WTI Crude Oil market has rallied a bit during the trading session on Thursday, on the back of a more bullish than anticipated inventory announcement. I believe that the market is going to run into a bit of trouble just above, as we have just at the 20 SMA, and the previous uptrend line which should now be resistive. I believe that the market will continue to find plenty of reason to roll over, even though the inventory number was bullish. This is because we are starting to see more American drillers coming into the market, and I feel it’s only a matter of time before the supply overwhelms the demand. I believe that the market will probably go down to the $60 level, perhaps even lower, perhaps down to the $68 level.
Natural Gas
Natural gas markets have gone back and forth during the trading session on Thursday, as we continue to bounce around. I believe that the market should continue to go much higher in the short term, but that should be a selling opportunity. If you’ve been following me here at Daily Forex, you know that I am very bearish of natural gas. Fracking is ramping up, not pulling back, so that should continue to throw a lot of supply into the market. I believe that the $3.00 level above should be a bit of the ceiling in the short term, but even if we rally beyond that, I would be more than willing to sell somewhere near the $3.20 above. I’m looking for some type of exhaustive candle after a bounce that I can start selling. In the meantime, I’m simply waiting as the market seems to be more of a scalping environment.
