WTI Crude Oil

The WTI Crude Oil market went back and forth on Wednesday to show quite a bit of neutrality and as a result I think that the previous uptrend line is going to continue to offer resistance above. Because of this, I believe that it’s only a matter of time before sellers get involved and pushes market back down. The $49 level also offers quite a bit of resistance as well, and because of this I feel that it’s only a matter of time before we can search selling. If we can break down below the bottom of the candle for the Wednesday session, I think that the market will go lower to fill the gap as it typically will do. I have no interest in buying at this moment as there is quite a bit of reasoning to think that we will continue to go much lower.

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Natural Gas

The natural gas markets initially fell during the day on Wednesday, but then turned around to break high above the $3.00 level. We turned right back around to close just above the $3.00 level though, so having said that I see quite a bit of volatility in this area. We have a previous uptrend line just above that should be resistance, so I think it’s only a matter of time before an exhaustive candle comes back and turns this market right around. I don’t really have any interest in buying this market even though I know that seasonality should help, as the northeastern part of the United States is getting cold. However, the market also has to deal with the fact that there is a massive amount of oversupply longer-term, so every time that natural gas rallies, I look for reasons to start selling. Most natural gas contracts are traded in the United States though, and with today being Thanksgiving it’s going to be a very quiet electronic session.

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