WTI Crude Oil

The WTI Crude Oil market fell during the course of the day on Thursday, as we continue to go back and forth in a very volatile manner. It appears that the $50 level below is going to be the beginning of fairly significant support, and that support could extend all the way down to the $49 level. With this being the case, I believe that it is only a matter of time before we see the buyers return. With this being the case, I feel that a supportive daily candle is reason enough to go long. On the other hand, if we break down below the $49 level I feel that the market will continue to go lower. However, it should be noted that it seems that the buyers overall seem to have control the market, so I would expect the bounce more than anything else.

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Natural Gas

The natural gas markets fell during the day initially on Thursday but found enough support to turn things back around and form a bit of a hammer. Because of this, looks as if the market is ready to continue to grind into the upside. We have been overbought for some time, and as a result the pullback was very healthy. The $3 level below I believe is the absolute floor in this market, as the 50-day exponential moving averages hovering around that area, and it is a large, round, psychologically significant number.

If we can break above the top of the hammer, I believe that the market will continue to reach towards the $3.40 level above. That is a large number from longer-term charts, so I think that makes sense as a target. Ultimately, I believe that even if we fall from here it’s only a matter time before the buyers get involved so I’m plane either a break out above the top of the candle for the session on Thursday, or a bounce house it comes.

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