WTI Crude Oil
The WTI Crude Oil market has fallen during the trading session on Wednesday, reaching down towards the 67.25 level. We have plenty of support just below there, and the uptrend line underneath should also offer support. If we can break down below that level, then the market continues to go towards the $64 level. At this point, I believe that any rally will struggle to get above $70, and I think we are range bound between now and the jobs number. Obviously though, there has been a bit of negativity and if the US dollar suddenly gets a surge, that could send this market much lower. Otherwise, if the US dollar weakens, we may make a move towards the upside again. Even though the market looks very soft, the uptrend line looms large.
Natural Gas
Natural gas markets fell during the trading session on Wednesday, as the $2.75 level underneath has offered resistance, and should now offer support. I believe that the $2.70 level also offer support. The $2.85 level has offered a bit of resistance recently, just as it has been supportive. That is the midline for the larger consolidation area, so I think at this point the best thing you can do is probably look for buying opportunities on softness, giving us an opportunity to pick up natural gas “on the cheap.” If we break above the $2.85 level, then the market probably goes looking towards the $3.00 level after that. Longer-term, I prefer to buy down at the bottom of the range, and sell at the top of the range, which of course is closer to the $3.00 level.
