WTI Crude Oil
The WTI Crude Oil market fell a bit during the trading session on Monday but turned around to form a slightly supportive candle. The $75 level above offering significant resistance, so therefore it’s going to take a significant amount of momentum building to continue going higher, but I think that the $72 level certainly looks as if it’s an area that we should find plenty of support. Longer-term, if we can break above the $75 level, I think that the market probably goes looking towards the $77.50 level after that. Pullbacks at this point should continue to see interest, especially near the $70 level if we were to break down below the $72 level. Beyond that, there is the red 50 EMA on the daily chart that you see attached to this article.
Natural Gas
Natural gas has fallen a bit during the trading session on Monday, losing over 1% by the time I started writing this analysis. Natural gas markets continue to look very sensitive been very soft, and I think that if we can break down below the $2.82 level, the market probably goes looking towards the $2.80 level next. After that, I think that we will continue to drop from there, perhaps reaching down to the $2.70 level. Rallies at this point should continue to be sold, because we have so much in the way of selling pressure just above current trading. I think that the market will continue to be very noisy, but it certainly looks as if we are ready to go towards the bottom of the larger consolidation area that we had been in over the last several months.
