WTI Crude Oil
The WTI Crude Oil market had a volatile session during trading on Tuesday, initially trying to go higher but finding enough resistance at the $72 level to turn things around. Beyond that, we also saw a lot of selling due to a massive move for a stronger US dollar. The $70 level underneath is support, and we did of course bounce from there. Because of this, it looks as if the market is ready to go higher, but I would anticipate that we could see a lot of noise in the process. I think short-term pullbacks are buying opportunities, and I think that given enough time we could build enough momentum to continue going higher. The market would then go to the $72.50 level, perhaps to the $75 level after that. If we did break down below the $70 handle, it’s likely that we should continue to see even more support below at the $67 level.
Natural Gas
Natural gas markets went back and forth during the session on Tuesday, testing the top of the daily uptrend channel. By finding resistance and that area, we turned around form a shooting star. The shooting star of course shows signs of exhaustion, and that means that we could pulled back from here to go looking towards the $2.80 level. A break down below that level sends the market towards the $2.78 level, an area that has been important in the past. If we do clear that area, then we will probably go towards the bottom of the uptrend in channel again. The alternate scenario is that we break above the top of the shooting star, which would show the market exploding above the resistance line, and then perhaps making a move towards $2.90 in the short term.
