WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the trading session on Monday but turned around of form a bit of a shooting star or perhaps even an inverted hammer for the day. We are sitting right on the $62.50 level, an area that has been supportive more than once in the past. I think at this point it makes a lot of sense to see this market try to bounce, but if we do break down below the $62.50 level, then we could unwind rather drastically towards the $60 level and rather quickly. Ultimately, this is a market that I think is oversold but clearly there’s no desire to put a lot of money to the upside right now. As long as that’s going to be the case it’s almost impossible to get involved from the long side. The $65 level above will loom large, as it is a psychologically significant figure. Clearing that would of course be very strong for the bulls.
Natural Gas
Natural gas markets have exploded to the upside for the trading session on Monday, reaching as high as $3.59 during the day. However, this was a massive gap and therefore it’s almost impossible to buy this market here. I think you need to wait for some type of pullback or perhaps even an attempt to fill the massive gap to start getting long. That could mean a pullback down to the $3.30 level, and I would also point out that what once looked like a bit of a drift lower is suddenly a bullish flag. That means that we could have much further to go. Recent adjustments to forecasts for the winter in America have driven up the price.
