WTI Crude Oil
The WTI Crude Oil markets fell during the course of the day, slicing through the $40 handle. That of course is a negative sign, and as a result it’s very likely that the market is going to try to reach down to the $38 level, and then possibly the $36 level below there. Although the market has been very bullish lately, the reality is that US producers continue to export massive amounts of oil, and that of course will continue to weigh upon the value of the WTI Crude Oil market, and as a result I’m willing to start selling again. Ultimately, I think that short-term rallies will be nice selling opportunities as well, as longer-term downtrend seems to have returned and with that we could start falling significantly.
Natural Gas
The natural gas markets have been in a massive downtrend for some time, but during the course of the session on Wednesday, they initially tried to break out to the upside. The $1.90 level caused quite a bit of resistance, and the market turned right back around and fell below the $1.80 level, as the it now seems to be free to go much lower, perhaps reaching towards the recent lows, aiming for the $1.60 level.
I have no interest whatsoever in buying this market, because quite frankly the supply is far too strong for demand, and of course we have been in such a long-term downtrend anyway. With this, it’s likely that the sellers have taken control yet again, and with that it’s very likely that every time the markets move of any significance, it will be negative and therefore a rally should be looked at as a possible selling opportunity as long as we stay below the all-important $2 level above, which I currently see as the absolute ceiling in this market.
