WTI Crude Oil
The WTI Crude Oil market fell during the course of the session on Tuesday, breaking below the $44 level. Because of this, it does look like we’re going to test serious support just below, but we have Crude Oil Inventories coming out of the United States today, so that of course will have an effect on this market. I think that there is a significant amount of support near the $42 level, so a bounce from there or a supportive candle would not be a huge surprise to me. With that being the case, I think that the sellers are probably going to be in control for the short-term, but the buyers will probably show up in the market again at that lower level. If we can break below the $40 level, I would be bearish of this market, but I just don’t see that happening at the moment.
Natural Gas
The natural gas markets rose during the course of the day on Tuesday, but remained well within the consolidation that we have been in for some time. With this being the case I believe that the $2 level on the bottom is massive support, and we need to break down below there before we can have anything along the lines of a longer-term trade. Until then, I would anticipate that the market should bounce from the $2 level and reach to the $2.20 level and vice versa. Short-term trading in a back-and-forth manner is probably about as good as it gets in the natural gas pits right now, but there is a lot of money to be made in that exact scenario if you have a well-defined region like we do now. Yes, we have seen quite a bit of strength here recently, but at the end of the day I think that this is a market that still is very much in a downtrend.
