WTI Crude Oil
The WTI Crude Oil market fell during trading on Tuesday as the $69 level looks to be a bit too resistive. The market had low volume though, so one has to wonder whether this was anything more than technical. It was a very choppy session on the short-term charts, making it very difficult to take any money. I think we are in an uptrend though, and the $67.50 level underneath should continue to offer plenty of support. Beyond that, I see the $65 level is offering major support. I do favor the upside overall, but I recognize that we probably need to pullback occasionally to take advantage of value as it is offered. Traders should also pay attention to the US dollar, as it has a major influence on this market as well. If it rallies, that tends to weigh upon crude oil, but if it sells off, that tends to be rather good for it.
Natural Gas
Natural gas markets fell again during the day but seem to be finding support near the $2.85 level. However, I think there are plenty of Sellers above, so I’m looking to sell on any signs of exhaustion, especially they come near the $2.90 level as it was previous support. That being the case, I’m going to sit on the sidelines for a moment, and then take advantage of any signs of weakness as we have been in a longer-term consolidation area. I believe that the $3.00 level continues to be a major resistance, just as the $2.70 level underneath is a major support level. Back and forth trading continues to be the way going forward, but we may have gotten a little bit overextended to the downside. Nonetheless, I do believe we go lower.
