WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the day on Monday, but you can see that we have ran into a lot of resistance at the downtrend line, something that does in fact suggest that we are ready to roll over again. Beyond that, the $50 level will of course cause a bit of psychological resistance as well. Ultimately, I think that the crude oil markets will continue to struggle, although I’m the first to admit that if we break above that $50 level, it could be the beginning of something rather significant. Based upon the shooting star though, it does look like we could find reasons to rollover. The $45 level underneath would be supported based upon what we have seen as of late. If we break down below the $45 level, it would be a massive sell signal.
Natural Gas
Natural gas markets went back and forth during the day, settling on a 3% loss. However, the candle stick itself is rather undecided, so I suspect what we are looking at here is the market trying to form some type of support to turn things around and bounce. That bounce will more than likely give us an opportunity to start selling again, as there should be significant resistance near the top of the gap near the $3.30 level. I believe in selling exhaustive candles in that general vicinity, as the gap will not only cause resistance but obviously the massive selling pressure that we have seen will continue to be a main driver. If we can break higher, the next major resistance barrier will be the $3.50 level. Selling here would be chasing the trade.
