WTI Crude Oil
The WTI Crude Oil market has been all over the place during the session on Tuesday yet again, as we have fallen, only to turn around and find buyers at the $71 level again. We reached the $72 level after that, as we continue to consolidate overall. The $70 level underneath continues to be a massive support level, which was also a massive resistance barrier. At this point, it looks as if we are trying to build up enough momentum to go higher, but it will continue to be very noisy. At this point, I think that we are likely to go looking towards the $75 level, but it’s not going to be easy. I think that the $70 level being broken would be a very negative sign, which would be an opportunity for this market to drop as low as $67.50 after that.
Natural Gas
Natural gas markets went back and forth during the trading session as well, as we continue to see a lot of volatility. We have gotten a bit too far to the upside, and of course have shown signs of exhaustion. I think at this point, we will probably continue to consolidate between the $3.10 level and the $3.30 level. I would expect a lot of choppiness at this point, and although I am very bullish, I recognize that we need to pull back a bit or at least grind sideways to catch our breath after the straight shot higher that we had seen previously.
We are in the seasonally bullish part of the year for natural gas as the United States continues to cool off and head towards winter. This increases demand, so typically between now and New Year’s Day we will see buyers return to this market on dips.
