WTI Crude Oil
The WTI Crude Oil market fell during trading hours on Tuesday but found enough support underneath the $68 level to turn around of form a hammer. There is a certain amount of demand underneath, and there is obviously a nice uptrend line. Conversely, the Brent market has broken through below the uptrend line that has been so important, but the WTI market hasn’t. I think at this .1 of these two markets will need to lead the way. It looks as if we could get a bounce from here, but I believe that $70 above will probably bring in fresh selling. If we break down below the uptrend line, then I think the market will test the 200 EMA to test the entire longevity of the uptrend overall.
Natural Gas
The natural gas markets initially tried to rally during the trading session on Tuesday, reaching towards the $2.78 level before rolling over in breaking below the $2.75 level. I think that given enough time we could break down to the $2.70 level, and then possibly the $2.60 level after that. I have no interest in trying to buy this market, and I believe that the 50 EMA Crossing back below the 200 EMA suggests that we are going to see more bearish pressure. The $2.85 level above is essentially what I look at as the “ceiling” in the market, and I think that given enough time sellers will come back every time we get closer to that level. I like selling rallies going forward, and then the subsequent breakdowns as well. We continue to have too much natural gas out there to elevate prices.
