WTI Crude Oil
Oil markets currently find themselves reaching towards the $54 level, but that’s an area of that is going to offer a little bit of resistance. I think the market might be a little overbought at that point so a pullback would be welcomed by the bullish traders out there. Longer-term, I still have a lot of concerns about supply, specifically oversupply, but I recognize of the buyers are in control at the moment. I think a pullback find support that we can take advantage of, lease for a move towards the $55 level, and then possibly even the $60 level where I think the market may very well top out at. Have no interest in selling quite yet, but if we broke down below the $50 level, something that isn’t going to happen today, I’d be a seller.
Natural Gas
The natural gas markets sat still course on Monday but currently find themselves testing the $3.75 level. We are sitting on top of the gap, so I think there will be a significant amount of support, and because of this a short-term supportive candle might be reason enough to buy. I think that short-term “buy on the dips” type of trades may present themselves as we try to get towards the $4 handle. Ultimately, I think there is a lot of noise between here and there so it will be choppy and therefore I prefer short-term trades. If we can break down below the $3.65 level, the market could drop down to the $3.50 level underneath there. That’s an area that should be supportive as well, but when you look at the longer-term chart you can see that we have recently made a “higher high”, which of course is the epitome of what an uptrend looks like. Because of this, I don’t have any interest in selling at the moment, at least not until we see significant bearish pressure.