WTI Crude Oil
The WTI Crude Oil market has rallied a bit during the trading session on Tuesday but continues to find trouble just above. As we have sold off slightly, at least from the highs for the day, it looks as if we are going to continue to struggle to go higher over the longer-term. I see a significant support level underneath based upon the uptrend line, and of course the psychologically important $66 level. Beyond that, we have a 200 day EMA on the chart underneath, and I think that will continue to play its part as well. Because of this, I prefer to find short-term rallies to start selling, as we continue to see a significant amount of bearish pressure at the $70 level, and therefore a lot of supply. I think we are going to be range bound for the next 24 hours, with more of a tilt toward the downside on short-term charts.
Natural Gas
Natural gas markets have bounced from the $2.70 level again, an area that has been supportive in the past. I think that the market should continue to see the $2.70 level offer a bit of support, but overall I think we have much more bearish pressure than anything else. I believe that the $2.80 level above will be a bit of a short-term “ceiling”, and therefore I think that a short-term rally should be sold. If we can break down below the $2.70 level underneath, then it opens the door to the $2.60 level after that. Overall, I am bearish of this market but I do realize that we are a bit oversold, so a bounce is probably necessary.
