WTI Crude Oil
As it was Independence Day in the United States, liquidity would have been a major issue as we have essentially seen a bit of electronic trading, and of course the CFD markets moving, but that’s about it. The $75 level above offers a significant amount of resistance, and I think that if we can break above that psychologically important level, the market could go higher. However, we may need to pull back a little bit to find value underneath it we can take advantage of. I think that the market will continue to climb based upon a major disruption of supply coming out of Libya, Venezuela, and of course Iran. I have no interest in shorting this market, and I think that you should look at this as a “buy the dips” type of marketplace going forward.
Natural Gas
With the Americans away for the Independence Day holiday, it’s obviously a market that is going to be very quiet, but as we have seen the market try to rally in the CFD markets, but then roll over at the $2.90 level, it suggests that we are going to continue to go even lower, perhaps reaching towards the $2.80 level, and then eventually the $2.70 level. I think that the $2.60 level continues to be a major support level from a longer-term charts, so I think that’s the longer-term goal going forward. I think that rallies at this point continue to be sold, with the $3.00 level above being the beginning of significant resistance that extends to the $2.10 level. I believe that the natural gas markets continue to be negative overall based upon the overall weather patterns of the United States favoring cooler temperatures in the short term.
