WTI Crude Oil
The WTI Crude Oil market fell slightly during the day as the $72.50 level offered a bit of resistance. Iranian tensions have caused a bit of an issue in this market, but I think we started to run out of momentum during the day. After all, the market can’t go in one direction forever. Beyond that, I think there is a lot of confusion as to what happens next, as you can see just how choppy the sessions have been - even on positive sessions. Because of this, I think we may need to back up a little bit to find buying pressure, but I think there is plenty of support down to at least the $70 level, if not the uptrend line below there. In other words, look at pullbacks as an opportunity to pick up value in a very strong market.
Natural Gas
Natural gas markets broke towards the $2.90 level during the day on Tuesday, breaking the top of an upward daily channel. That’s a very strong sign, showing that we are in fact picking up momentum. On the hourly chart, we are forming a bit of shooting star, but I suspect that will only be an attempt to retest the previous resistance in the form of the daily uptrend channel, and therefore should offer a buying opportunity. Obviously, if we can break above the top of the candle for the day, that would be a buying opportunity as well. It currently looks as if the $2.80 level should offer a significant amount of support for the market, and a short-term “floor.” Short-term traders will continue to buy dips in this market from what I see on the chart.
