WTI Crude Oil
The WTI Crude Oil market went back and forth during trading on Wednesday, as we continue to grind sideways, perhaps in a bid to affirm the break of the downtrend line that we have seen recently. The $50 level currently looks as if it is offering a bit of support, just as the 50 day EMA above looks as if it is offering resistance. If we can break above the 50 day EMA, then I think we could go higher, initially to the $55 level, and then eventually the $57.50 level after that. I think the WTI Crude Oil market will continue to be very difficult to get excited about, but it does look as if we are in a phase of accumulation, and that we will eventually take off to the upside. Pullbacks at this point should continue to be supported by the $50 level, the 20 day EMA pictured in green, and of course the previous downtrend line.
Natural Gas
Natural gas markets initially tried to rally during the trading session, reaching towards the $3.75 level before rolling over and forming a very negative candle. By doing so, it looks as if we are ready to drop in fill the gap underneath, and of course the longer-term outlook for natural gas is always going to be bearish, because we have more than enough natural gas in the United States alone to fuel the world for almost 300 years. That doesn’t mean it’s in storage, but it isn’t exactly hard to get a hold of. Add in Canada, and then you can see just how oversupplied we are longer-term. I continue to sell rallies, and I do think that the gap gets filled in the next couple of days.
