WTI Crude Oil

The WTI Crude Oil market initially fell on Friday, but then turned around to form a bit of a hammer. We are sitting right underneath a cluster of noise at the $48 level, and I believe that this was the first signs of the market struggling. Because of this, I look at this chart and see that there could be some short-term bullishness, but I believe it’s only a matter of time before the sellers come back into play. The 200-exponential moving average is just above, so some type of exhaustive candle between here and there would be a nice selling opportunity short-term traders have a little bit of room to move here, but if you have a longer-term trade in mind, you may have to be patient and wait a couple of sessions to get your trade.

Natural Gas

Natural gas markets broke higher during the day on Friday, after we had cleared the $3.33 handle. The fact that we close towards the top of the candle tells me that the market is ready to go higher, as we have sliced through significant resistance. I believe that the market should then go to the $3.50 level above, which should be resistive. Just above there, I see a gap that runs all the way to the $3.74 level. I think that’s the longer-term target, and because of this I look at pullbacks as potential buying opportunities. It is difficult to imagine a scenario in which I would be selling, least not until we break down below the $3.25 level, which is something that I don’t see happening anytime soon. Natural gas markets continue to get a bit due to export numbers from the United States, and global demand. While US demand will be dropping, it looks as if other parts of the world are willing to pick up.