WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the session on Tuesday but has found resistance again near the $69 level. Beyond that, there is a significant amount of volatility in this market due to being overextended, and of course talk of a potential Iranian deal extension could bring down part of the fundamentals in this market. Nonetheless, this is a market that has plenty of bullish pressure underneath, and a nice uptrend line that has been respected so far. I anticipate that the $66 level underneath should be supportive, and then of course the uptrend line. I do believe that this pullback should be a nice buying opportunity if you are patient enough, but if we were to break down below the uptrend line, that could send this market much lower. Keep in mind the US dollar does influence oil, but so far that doesn’t seem to be an issue.
Natural Gas
The natural gas markets pulled back slightly during the trading session on Tuesday, but then turned around to show signs of strength as we rallied over 1%. It looks as if we are going to test the $2.80 level above, which is an area that is significant amount of resistance. I think that the market will more than likely show signs of exhaustion in that area, which could give us a nice selling opportunity. However, if we were to break above the $2.80 level, the $3.00 level above would be massive resistance in more than likely the target. If you are short-term trader, it makes sense that we would go higher, but I think that’s is something that only the most noble trader should be messing around with. I’m looking for signs of exhaustion as there are warmer temperatures coming to North America.
