WTI Crude Oil
The WTI Crude Oil market has pulled back a bit during the day on Monday, testing the $68 level. There is plenty of support just below and there’s also the 50 EMA on the hourly chart that shows signs of offering a bit of dynamic support, so I think that it’s only a matter of time before the buyers return pick up value. However, if we were to break down below the $67.50 level, the market could drift down to the $66 level. I think that the market will continue to be very noisy, but I also believe that the oil markets will also be driven by headlines more than anything else. At this point, we are still very much in the throes of an uptrend, and very well above the uptrend line that defines this as a “buy only” market, at least for the moment.
Natural Gas
Natural gas markets pulled back a bit during the day on Monday but did recover some of the gains at the $2.90 level. There is a significant amount of support at the $2.90 level, but I think if we break down below there the market will drop down to the $2.88 level. If we rally from here, it will simply be another return to the overall consolidation that the market has been in. The $2.88 level being the very bottom of the range, and the $3.00 level above being the top of that range. There is a lot of noise in this market, as it is somewhat thin at times, and of course it follows the short-term trade reports. Overall, I would employ some type of range bound system between these levels over the next couple of days.
