WTI Crude Oil
The WTI Crude Oil market fell significantly on Friday, reaching towards a major uptrend line. I think at this point we are trying to figure out whether we are going to find support or break down. Based upon the close, and the fact that we have lost 2%, I think that we very well could break down. If we clear $65 underneath, I would begin selling at this point, reaching towards the $62 level. If we bounce from here, the $68 level above could be targeted. The uptrend line of course has been important more than once, so I think the next couple of sessions will be crucial as to where we go next. On a rally, I suspect that we will see a certain amount of resistance near the $69 level.
Natural Gas
Natural gas markets initially tried to fall during the day on Friday but found enough support at the $2.90 level to turn around and show signs of life. It looks as if we are heading towards the $3.00 level above, an area that is massively important. If we can break above the $3.00 level, it’s likely that the next major resistance barrier will be closer to the $3.10 level, an area that I think will hold in the end. At that point, we should have a nice longer-term selling opportunity, giving us an opportunity to play the overall range. The $2.80 level underneath is massive support, and I suspect that the sellers will be aiming for that if we get that exhaustion. In the short term though, I do think that we rally, and I think we will continue to go higher over the next couple of days.
