WTI Crude Oil
The WTI Crude oil market rose during the day on Tuesday, bouncing off the $43 level yet again. The market has been consolidating for a moment now, as the $43 level has offered support, and the $46 level has offered resistance. Keep in mind that we do have the Crude Oil Inventories number coming out of the United States today, and that of course can have a massive effect on this market. I think currently that the biggest problem the market is facing is that there is simply a massive amount of resistance extending all the way to the $50 level now. In other words, all of the “easy money” has already been made in this move higher. Expect choppy conditions, and I don’t see this market breaking out of the previous consolidation range but I do freely admit that a move below the $42 level should send this market looking for $40 fairly quickly.
Natural Gas
The natural gas markets had a fairly strong session on Tuesday, gaining over 3%. This has become fairly common for this market though, as we have seen fairly significant moves recently. The last week or so, we have been consolidating but it seems like the market is perfectly comfortable doing that. There is quite a bit of resistance above, especially around the $2.20 level so if we try to break above there and failed, it should be a short-term selling opportunity yet again. After all, the markets don’t really have anything to move them with any great significance at this point in time, as the cold weather is dissipating from the northeastern part of the United States. There is still far too much natural gas out there, and even though drillers are starting to step away from the fields, the reality is that we still have more than we need. Because of this, I am waiting to see whether or not we get some type of short-term resistive candle to start selling.
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