WTI Crude Oil
The WTI Crude Oil market initially fell during trading on Monday but turned around to form a bullish looking candle. However, this hammer is pressing against significant resistance just above, so at this point I think there is still roughly a 50% chance we breakdown from here. That would turn this hammer into a “hanging man”, a very negative sign. It is because of this that I will be sitting on the sidelines until the daily candle for the Tuesday prints. Once it does, I think we will have more clarity to work with. I do recognize that there is a lot of resistance just above, but the candlestick formation does look bullish. Stay tuned, I will keep you abreast as to what I’m doing here at Daily Forex.
Natural Gas
Natural gas markets went back and forth during Monday’s trading, hanging about the $2.70 level. It’s a reasonably bullish looking candle, and quite frankly I think this market is overdue for some type of correction after the massive selloff. Volume is a bit light, but I think you wouldn’t take much to get some short selling profit-taking going in this market. I believe that the $2.50 level underneath is massively supportive, so I think it’s going to take something special to break down below that level. I anticipate that we will rally towards the $3.00 level above, where I would anticipate seeing even more resistance. Ultimately, I am a seller of signs of exhaustion after rallies, as we are leaving the cold part of the year in the United States, and therefore demand will fall. Beyond that, Americans are at it again, fracking at record levels. I believe that unless you are a short-term trader, this is a “only” type of situation.
