WTI Crude Oil
The WTI Crude Oil market gained over 3% during the trading session on Tuesday, breaking the vinyl $70 level. Now that we have done that, there isn’t much to keep this market from continuing to rally from here. I believe that the market will probably go looking towards the $72 level next, and that short-term pullbacks should continue to be buying opportunities for those who are patient enough to wait for them. You can see that I have the 50 day EMA on the daily chart marked in red, and it does seem to be offering a bit of dynamic support. That means that we should continue to see value hunters in this general vicinity. Ultimately, I believe that this market goes to test the highs yet again. Selling at this point isn’t much of a thought.
Natural Gas
Natural gas markets initially fell during the trading session on Tuesday but found enough support near the $2.90 level to turn around of form a hammer for the second day in a row. That’s a very bullish sign, and I think this shows that we are about to have a bit of a bounce. However, I also recognize that there is a significant amount of resistance above, so I think that it is only a matter time before the sellers return. I think short-term buying positions that will be followed by selloffs is probably going to be a staple of what we are about to witness. I think sideways action with a proclivity to break back down makes sense though, because quite frankly the market is oversupplied longer-term. The $3.00 level above continues offer a bit of resistance.
