WTI Crude Oil
The WTI Crude Oil market went back and forth during the course of the session on Thursday, as we bounced around the $38 level during the day. If we can break down below the bottom of the range, this market should then reach towards the $36 level given enough time. Quite frankly, at this point in time this market has been very volatile and with the Nonfarm Payroll Numbers coming out today, it’s likely to continue to be. I prefer to sell rallies in this general vicinity, as well as breakdowns. I’m not necessarily comfortable buying, because we have seen so much in the way of resistance between here and the $40 level.
Natural Gas
The natural gas markets had a very volatile session on Thursday, as we initially broke above the $2 level, only to find far too much in the way of selling pressure above there. Because of that, the market turned right back around and fell significantly. The neutral candle that has formed does have a little bit of red body, which is negative of course. However, I keep noticing that the $2 level has been massively resistive, and this candle pretty much engulfed the neutral candle from the previous session. With that being the case, if we can break down below the bottom of the range for the Thursday session I am more than willing to sell this market.
The supply continues to be far too strong for demand, and on top of that we also have major problems with storage when it comes to the natural gas markets, so it makes a lot of sense that the market would probably try to drive down to the $1.80 level next. Having said that though, we need to have the breakdown first though, as it shows that we have a significant amount of downward momentum to start selling again.
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