WTI Crude Oil
The WTI Crude Oil market rose during the course of the session on Thursday, as the $30 level continues offer quite a bit of support. However, I believe that this is only temporary so I look at rallies as potential selling opportunities. Any rally at this point in time should be a nice selling opportunity going forward as well, because the massive amount of bearish pressure in this market due to not only currency headwinds in the US dollar strengthening, but also the fact that supply is far too strong for demand to overcome. I believe that the $36 level continues to be the “ceiling” in this marketplace and I have a very hard time believing that we are going to break above there anytime soon. I do believe that eventually once we break through the $30 level we should target the 28th dollars level, and as a result I would become massively bearish below $30 as well.
Natural Gas
The natural gas markets fell apart during the day on Thursday, breaking below the vital $2.20 level, an area that I have long been looking at as massive support just waiting to happen. We now are well below there though, so I believe it’s only matter of time before we break down and head to the $2 level. Originally, it looks as if this market could possibly try to break out and start a longer-term uptrend, but the downtrend line that coincides with the $2.50 level held and it now looks as if the market is going to start accelerating to the downside.
I believe that the $2 level will be broken, and then the market should reach back to the 1.80 levels given enough time. Rallies at this point in time should be selling opportunities on short-term charts, as the bearish pressure continues with a massive oversupply of natural gas.
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