WTI Crude Oil
The WTI Crude Oil market initially fell during trading on Monday as traders came back to work. This probably shouldn’t have been too much of a surprise considering this sickly looking candle stick that we formed for Friday. However, we have turned around to show signs of life and support near the $63 level and have formed something to the effect of a hammer. This shows just what this market is: a game of tug-of-war. To the upside, we have the $65 level offering significant resistance, and below I think that the $63 level is one of many support levels that could come into play.
On a break down below the $63 level I anticipate that the $62.50 level will be very supportive, and then the $60 level after that. To the upside, if we can finally break above the $65 level then we will start to make bigger moves, with an eye on the $70 level longer-term.
Natural Gas
Natural gas markets came unraveled during the Monday session by breaking below the $2.60 level. There is massive support below the $2.50 level so I anticipate that sooner or later we are going to get a bit of a bounce or supportive candlestick. This is based upon warmer temperatures coming to the United States, which considering that it’s April 15 as I write this there shouldn’t be much of a surprise and that statement. However, natural gas markets tend to work on short-term thought more than anything else, and therefore it makes sense that it got hammered. At this point in time though, I’m looking for a supportive daily candlestick to start buying as we are at the bottom of a longer-term range that has been quite reliable. In the next 24 hours, I probably won’t be doing much.
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