WTI Crude Oil

The WTI Crude Oil market initially pulled back a bit during the day on Tuesday but rallied to break above the top of the shooting star from the previous session. I believe that the market will continue to grind to the upside based upon this, but I think the keyword is going to be “grind.” The 50-day simple moving average is above at the $68 level, and that should be the next resistance barrier. Pullbacks at this point should continue to be thought of as a value, and unless we break down below the $65 level, which would be a breach of the uptrend line that we have been dealing with lately. There seems to be a lot of noise in this market, but it does look like if you are cautious enough and probably more importantly, patient enough, you should profit to the upside.

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Natural Gas

The natural gas markets initially fell during the trading session on Wednesday, reaching down to the $2.90 level. However, we turned around to break towards a $2.96 level again, an area that has been resistance as of late. If we can break above the $2.96 level, then we will probably go looking towards the $3.00 level. That’s an area that is psychologically important, but I think there is even more structural resistance at the $3.10 level. If we do a turnaround from here, it’s likely that the market will break down to the $2.90 level, and then possibly the $2.85 level. It’s difficult to discern anything beyond a short-term trade though, so keep that in mind. I would pay attention to the hourly chart, using these levels as parameters from which to trade. Right now, I suspect that we will see a lot of back-and-forth action with those resistance barriers above.

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