WTI Crude Oil
The WTI Crude Oil market rallied slightly during the trading session on Thursday, gaining 0.5% for the day. It looks as if the market is going to continue to go higher, perhaps reaching towards the $68 level above. That area has been resistance recently, but I do think that we could break above there. When you look at the chart, it doesn’t take much imagination to notice that there is an uptrend line that we have been walking along, so I think that the market should continue to try to grind to the upside. I find it especially telling that the oil markets rallied in the face of a stronger US dollar during the day as well. Eventually, this market should continue to go much higher. Otherwise, if we break down below the $65 level, then we go much lower.
Natural Gas
The natural gas markets initially fell during the day as well but found enough support just above the $2.90 level to turn things around of form a massive hammer. The hammer looks likely to signify that we are going to continue to reach towards the $3.00 level, and then perhaps even the $3.10 level above which is massive resistance. Essentially, there is psychological resistance at the $3.00 level, and structural resistance of the $3.10 level above. We are grinding to the upside, and at this point I think that short-term gains can more than likely be had. However, we are getting closer the top of the overall trading range, so I think that looking for a selling opportunity over the next several sessions might be the best way to go. It really comes down to your timeframe and your time horizon more than anything else right now.
