WTI Crude Oil
The WTI Crude Oil market fell initially during trading on Monday, reaching down towards the $73 level. We found that area to be supportive enough to turn things around of form a nice-looking hammer for the day though, and that tells me that there is still plenty of buying pressure underneath. We are still very much in an uptrend, and therefore I continue to look for short-term pullbacks for value. I believe that we will go looking towards the $75 level, and then the $77 level. I think the $73 level has shown itself to be significant support, and therefore if we broke down below there I would be a bit more concerned. Until that happens though, I think we are consolidating in trying to reach much higher levels. Iranian sanctions are going into effect, so that continues to have people buying.
Natural Gas
Natural gas markets exploded to the upside again during the trading session on Monday, and I think we are bit overbought at this point. The pattern is simple though, we see a pullback and then the buyers come back into this market. Overall, I think we can continue to go higher, but we need to pullback to find value. Natural gas markets have explosive momentum to the upside, but this can only last so long. As you can see over the last couple weeks, we have seen short-term pullbacks, but those have simply been buying opportunities. We are trading the cold months right now, so that of course makes sense that we have a lot of bullish pressure. However, this is seasonal and short-term.
