WTI Crude Oil
The WTI Crude Oil market fell apart during the trading session on Tuesday, as inventory numbers in the United States ended up sending prices lower as we are starting to see more supply come online. This makes sense, shale producers of course are attracted to higher pricing. At this point, we closed the day sitting on top of an uptrend line that I think is important, so I think if we break down below the $60 level, the uptrend is over, and we should continue to go lower. Because of this, I think it’s probably best to sit on the sidelines for the next 24 hours, as it could be crucial as to where we go next. However, I will keep you up-to-date as to what I am doing here at daily Forex, and it will release a video tomorrow telling you which way I am trading.
Natural gas markets fell again, breaking the back of a hammer from the previous session on Monday, and while this is an extraordinarily negative sign, it’s almost impossible to sell this market now, unless of course you are adding to a larger position. I don’t have any interest in trying to short it now for the first time, because I think we are overdone. The stochastics are crossing over in the oversold area, and we have fallen apart over the last week or so. I want to see some type of bounce that I can start selling, and at that point in time will not hesitate to sell the first signs of weakness. I would love to see a candle somewhere near the $3.10 level look negative, perhaps forming a shooting star, which would be an excellent signal. I have no interest in buying this market, we are getting out of the bullish season.