WTI Crude Oil

The WTI Crude Oil market initially fell on Thursday, dropping near the $49.25 level. However, we found enough support to true things back around and form a hammer, which of course is one of the more bullish candlesticks you can form. Because of this, I feel that the market will continue to find buyers as we grind away in order to try to find enough momentum to break out to the upside. A move above the $52 level would be a breakout, and I believe at that point in time the market would probably try to get to the $55 level. Alternately, if we break down below the $49 level, I feel that the market will probably drop down to the $47 level in the short term. Although I am not bullish longer term, I have no interest whatsoever in trying to sell at this point in time.

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Natural Gas

The natural gas markets initially fell on Thursday as well, but found enough support near the $3.12 handled the turn things back rent shoot straight up into the air. I have had a target of $3.40 recently, and it seems to me like we are most certainly going to get there soon. Because of this, I think that anytime you get a short-term pullback, you have to be thinking about buying. At the $3.40 level I see much more significance to that level on the longer-term charts than current levels, so I feel that point time will probably run into quite a bit of resistance.

With this being the case, I think that you cannot sell this market and I do believe that there will be a certain amount of psychological support near the $3.10 level, and most certainly near the $3.00 level. Because of that, this is essentially a “buy only” type of market right now.

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