WTI Crude Oil
The WTI Crude Oil market fell significantly during the trading session on Monday, breaking below the $67 level. The liquidity could have been better of course, as it was Memorial Day in the United States. There is a massive uptrend line underneath, and that should continue to keep buyers interested in this market. We have seen a massive turnaround in the market, but I think if we can stay above this uptrend line, the market is likely to continue going higher eventually. I would wait for a move above the $67 level, before I put any money to work to the upside. On the other hand, if we were to break down below the $65 level, I am more than willing to start shorting this market, aiming for at least the $62 level underneath. I believe the next couple of sessions will be crucial for the trend.
Natural Gas
Natural gas markets initially fell during the day on Monday but turned around at the $2.90 level to find enough support to turn the market to the upside. Now that we have done this, it’s likely that the market will find resistance at the $3.00 level above, which is a psychologically important figure. If we break above there, then the next major barrier would be the $3.10 level. I’m looking for some type of exhaustion between here there to start selling, but the short-term market most certainly favors buyers. I think short-term traders can pick up little dips as an opportunity to take advantage of the futures market, but longer-term I think that we will eventually exhaust ourselves and start selling again. I will wait for a daily negative candle into resistance before I start selling.
