WTI Crude Oil
The WTI Crude Oil market went back and forth during trading on Thursday, as we continue to bounce around overall. The $64 level has offered a bit of resistance, but I think if we break above the top of the range for the session, I think the market will continue to go towards the $66 level. That is resistance, so a clearance of that level should be a very strong sign. The alternate scenario of course is that we break down below the uptrend line from the daily chart, and the $62 level. If we break down below the $62 level, we should then go down to the $60 level next. With the jobs number coming out today, I anticipate a lot of volatility on short-term charts, but it does look as if the uptrend line is being respected, at least so far.
Natural Gas
This market is a bit different, as a continues to grind sideways around the $2.70 level. I think that we continue to see more of this action, and at this point I am more than willing to sell rallies as they appear. The market participants continue to fight any sign of strength in this market, which makes a lot of sense as the oversupply of natural gas continue to be a major issue. I believe that the $2.60 level is the beginning of significant support down to the $2.50 level. As far as rallies are concerned, the $2.80 level above is resistance, with the $3.00 level above being even more resistive. As soon as we get some type of exhaustion after rally, I am more than willing to jump into this market and start shorting.
