WTI Crude Oil
The WTI Crude Oil markets fell during the day on Monday, breaking below the bottom of the shooting star from Friday. With this being the case, looks like we are going to pull back a little bit from here and that of course makes quite a bit of sense considering all of the bullish pressure that we have seen recently. The $44 level below should now be supportive, but we could even drop-down the $42 level in the near term. The area should continue to be important, and as a result we can break down below the $42 level, at that point in time I would be willing to sell. Until then, I have to assume that the market is going to continue to be very bullish, and that these pullbacks should offer value the people can take advantage of.
Natural Gas
Natural gas markets fell during the course of the day on Monday, as we continue to bounce around just above the $2.00 level, and the $2.20 level above continues to be resistive. With that being the case, I believe that the market is going to continue to go back and forth on a short-term type of situation. If we can break down below the $2.00 level though, I would be more than willing to sell this market as it is in a longer-term bearish trend anyway. The $1.90 level below will be the target first, and then eventually we could try to reach down to the 1.80 level. Because of that, I continue to sell this market every time it rallies on the short-term chart, and of course the aforementioned breakdowns would have me doing the same thing. After all, even though the drillers are starting to step away from the field, we still have a massive amount of supply out there that the market will have to chew through.
