WTI Crude Oil
The WTI Crude Oil market gapped higher at the open on Monday, but struggled at the $30 level. It looks like the market is going to continue to struggle in this general vicinity, but having said that I believe that we are going to turn things around and try to reach towards the $26 level. The market seems to have quite a bit of resistance all the way to the $34 level, and with that being the case I have absolutely no scenario in which I’m willing to buy this contract at the moment. I think that we will more than likely try to reach down to the $26 level, and then eventually the $25 level which is my target. I believe that the market should continue to be very negative as the supply is so strong and the demand is so soft.
Natural Gas
The natural gas markets fell significantly during the course of the day on Monday, as we broke down and reach towards the $1.90 level. Ultimately, this is a market that is in a very negative trend, and I believe it’s only matter time before we reach the 1.70 level below. Ultimately, every time we rally, there is a good chance that we get an exhaustive candle that we can start shorting yet again. I have no interest in buying, the natural gas markets are very negative, as there is more than enough supply to keep this market very soft.
Ultimately, this is a market that looks negative also because we closed at the very bottom of the range for the day. With this being said, I have no interest whatsoever in buying and I believe that the natural gas markets will continue to be soft for the foreseeable future. The winter is almost over in the northeastern part of the US, and that of course will have a drastic effect on demand also.
