WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the trading session on Tuesday but rolled over as the $66 level continues to bring and sellers. Because of this, I think that it’s likely we will continue to see a bit of downward pressure, as we are bit overextended. I think that the uptrend line underneath should continue to keep this market afloat though, so I’m not looking for some type of major meltdown, I’m just looking for an opportunity to pick up a short-term short position, and then possibly a value play underneath. It’s not until we break down below the $61 level that I would be concerned about the uptrend, which would be very negative indeed, because it would not only clear the couple of support levels underneath, but it would also break the major uptrend line.
Natural Gas
Natural gas markets rally during the session on Tuesday, breaking towards the $2.70 level. It looks as if the market is trying to build up a little bit of bullish pressure, and quite frankly I welcome that as it could give us an opportunity to sell from higher levels such as the $2.80 handle. The market has seen significant resistance there recently, and I think it will continue. Alternately, if we break above there and go to the $3.00 level that’s even more resistive area that we could see a lot of sellers come in. If the market rallies a bit, I think that it is only a matter of time before we see sellers jump in and take advantage of any signs of weakness. The $2.60 level begins support down to the $2.50 level. I have no interest in buying, and I think that it is only a matter of time before sellers punish this market yet again.
