WTI Crude Oil
The WTI Crude Oil market has been very noisy during trading on Monday, initially dipping towards the $70 level only to turn around and rally again. OPEC says it expects global demand to grow going forward, and that put a little bit of bullish pressure into the market. The $70 level now looks likely to offer support, and I anticipate that the market will continue to find buyers closer to that level. I recognize the $72 level as initial resistance, but only because it is the most recent high. I think we will break above that level and go looking towards the $72.50 level next. Beyond that, the market could very easily go to the $75 level. I believe the $70 level is the beginning of significant support down to at least the $69 level in the short term.
Natural Gas
Natural gas markets rallied during the day as well, reaching towards the $2.828 level. The market is trying to break out to the upside, meaning that we could make a run towards $2.90, and then eventually $3.00 after that. I anticipate that the sellers would come back closer to that level, or at the first signs of exhaustion as this market must certainly is oversupplied longer term. In the short term though, we do have a little bit of demand in the market, and I think that we will continue to see the buyers jump in as natural gas is now going to be used to cool overheated homes. I believe at this point, if we break down below the $2.78 level, that would be extraordinarily negative, sending the market down to the $2.70 level rather quickly. However, things look bullish in the short term, so I suspect that we will get a move higher.
