WTI Crude Oil
The WTI Crude Oil market initially trying to rally during the day on Monday, but found the $44 level to be far too resistive again. By doing so, we fell below the $43 level during the day, and as a result it looks as if we are more than likely going to try to reach towards the $42 handle going forward. That is an area that should be supportive, based upon the fact that it had been so resistive previously. There are several oil-producing companies giving earnings reports this week on Wall Street, so it is possible that perhaps it will have an effect on the marketplace as far as the profitability of the crude markets themselves. Ultimately, this is a market that seems to be very volatile, and I do think that sooner or later the buyers will get involved again.
Natural Gas
The natural gas markets initially tried to rally during the course of the session on Monday, but turned right back around and wiped out most of the gains from Friday. With this being the case it essentially formed a “today shooting star”, meaning that the sellers are most certainly still continuing to build up pressure. If we can break down below the $2 level, I feel that the market will then reach towards the 1.0 level, and of course even lower than that. With this being the case, I am still bearish, but ultimately this is a market that will show quite a bit of volatility and of course opportunities to get back and forth on short-term decisions.
This is a market that of course is dealing with a huge oversupply of the underlying commodity, so with that being the case I have no real interest in buying this market as I think that the longer-term trend is still very much intact.
