WTI Crude Oil
The WTI Crude Oil market bounced off of the $28 level during the session on Thursday, in a rare sign of strength. However, we struggled at the $30 level, and as a result I think this screams that we are going to start selling off again fairly soon. I have no interest whatsoever in going long in this market, and I am simply waiting for a resistive candle in order to get involved. On a resistive candle I am willing to sell and continue to punish this market as it is falling apart in general.
I believe that the $32 level above is even more resistive, and it’s not until we get well above the $40 level that I feel the trend is in any real danger of changing. I believe that the target is $25 going forward and will continue to trade this market as such.
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Natural Gas
The natural gas markets continued to bounce a little bit during the session here on Thursday, but it struggled at the $2.20 level and pulled back a bit. By forming a fairly neutral candle, it looks as if the rally is starting to run out of steam a little bit. I would fully anticipate this, because we are most certainly in a downtrend. I think that it is only a matter time before we drop down to the $2 level, as we have quite a bit of interest at that level. The downtrend line that had been keeping this market down before is still there, so it’s only a matter of time before the sellers get involved in my opinion. It is not until we break above that downtrend line that I would consider buying this market.
Ultimately, the supply is far too strong for the demand, and it is only a matter time before the sellers really circumflex their muscles again, as we have been in for several months.
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