WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the trading session on Wednesday only to find resistance at the $66 level and start falling again. We are now below the $65 level, and I think that we are ready to go even lower now that we have tested the uptrend line and found to be resistive again. I think that ultimately, the market will break down to the $62 level, and then eventually the $60 level. The $66 level above and of course the uptrend line that we had previously been paying so much attention to should be resistive, so I do think that we go lower over the next several sessions. In general, I don’t expect some type of meltdown, but I do think that the sellers have made a significant statement.
Natural Gas
the natural gas markets have gone back and forth during the trading session on Wednesday, showing signs of confusion at the $2.85 level. I think that the 20 SMA on the Bollinger Band indicator should continue to be the main driver of poor we go next, as it will attract a lot of algorithmic trading. If we break the top of the daily candle for the session on Wednesday, then I think will go looking towards the $2.95 level again that had been so resistive. Otherwise, if we break down below the bottom of the daily candle, the market probably goes looking towards the $2.80 level, and then possibly the uptrend line after that. The market has been very noisy as of late and positive, but at the longer-term outlook for this market still is consolidation, although we are most certainly closer to the top of it.
