WTI Crude Oil
WTI Crude Oil market traders went back and forth during the day on Tuesday, as we have recently broken down below the uptrend line. Ultimately, the market looks as if it is going to continue to be very rocky, but as you can see on Monday we sold off as soon as we tried to rally above the uptrend line. I think if we can break down below the $58 level, the market will probably go down to the $56 level again. Otherwise, any rally at this point should be a selling opportunity until we can break above the $62 level. At that point, I would anticipate a move to the $65 level, but that is very unlikely as we have a major oversupply of crude oil due to Americans drilling. I believe that we have seen the highs for the year.
Natural Gas
Natural gas markets rallied a bit during the trading session on Tuesday, as we finally saw a green candle. However, this market has been totally crushed, and it looks likely that we are going to try and get a bit of a relief rally, perhaps as high as $3. I would love to see some type of rally that I can sell on signs of exhaustion, and I believe that the $2.50 level underneath is massive support. Because of this, I think we are far too overdone, and at this point we need to see some type of opportunity to short again, but not at these low levels. We have left the most bullish time of year for natural gas, and as temperatures rise in the United States, prices will fall and the natural gas pits. I believe that we have seen the highs in this market for the year as well.
