WTI Crude Oil
The WTI Crude Oil markets gapped higher to kick off the week on Monday as there’s been a bit of a “risk on rally” around the world after the United States and China decided to call a bit of a cease-fire in the trade war. Beyond that, we also have the OPEC meeting momentarily, and of course it looks like the Russians may be able to talk other countries into cutting production. If that’s the case, we may be trying to find a bit of a bottom down here near the $50 handle. That makes sense, because it is a large come around, psychologically significant figure. However, if we make a fresh, new low, then we probably see this market break down to the $45 level which was the beginning of the entire trend higher. I think the next couple of days will be crucial but it’s likely that there are probably buyers on dips.
Natural Gas
Natural gas markets fell a bit during the trading session on Monday as we kicked off the week, reaching towards the uptrend line underneath. That of course is a continuation of the wedge that I have marked on the chart, and I do think that we will probably bounce from here but more than likely we will see sellers come back into this market as we approach the $5.00 level. I don’t think we get to that level anyway, as the way it should hold. Exhaustive candles should show opportunity to start selling again. If we did break above the $5.00 level, then we could get an explosive move to the upside, but I believe that as we are getting closer to the Spring contracts, there will be sellers push even lower. Eventually I think we will break down below the $4.00 level and back towards the gaps underneath.
