WTI Crude Oil
The WTI Crude Oil markets fell hard during the trading session on Friday, giving back all signs of strength as we reached towards the uptrend line based upon fears of a trade war. By closing the way, we did, it’s likely that we will see major sellers coming into this market, and then hounding much lower. The $60 level would be the initial target, and then possibly the $58 level after that as the market continues to struggle. However, if we bounce from here it is possible that the uptrend line could hold. If you are not involved in this market right now, I would wait to see some type of daily signal one way or the other to put money to work. I believe that the market will continue to be noisy and volatile, but that’s nothing new based upon the last couple of months.
Natural Gas
The natural gas markets have rallied a bit during the trading session on Friday as we continue to see a lot of sideways. The market continues to dance around the $2.70 level, and I think that we are more than likely going to continue to see a lot of short-term back and forth. If that’s the case, look for a scalping opportunity when we get either overbought or oversold, using your favorite range bound indicators such as the Stochastic Oscillator. I believe that the $2.80 level above will be resistance, and I would love to start selling near that area if we get the opportunity. Otherwise, if we pull from here I think that the $2.60 level underneath is the beginning of a massive support level. That level extends down to the $2.50 level, so I think that we need to see some type of bounce to start shorting.
