WTI Crude Oil

The WTI Crude Oil market went back and forth during the day on Monday, as we are entering one of the least liquid times of the year. I believe that the market will continue to see volatility in the short-term, mainly because the majority traders will not be interested in risking any serious amount of money during the holidays. The candle shows just how lackadaisical the market is, but I believe that the market has real support below at the $50 level. That’s an area where I feel the market will find buyers, and supportive candles should offer buying opportunities. The $54.50 level above continues to be the resistance, and probably extends all the way to the $55 level. Ultimately, I believe that the next couple of sessions will be very choppy and stay within this consolidation area overall.

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Natural Gas

The natural gas markets went back and forth during the day on Monday as we see quite a bit of volatility. The $3.30 level is massively supportive, and I think that the support extends all the way to the $3.25 level underneath. Any type of supportive candle should be a buying opportunity, and with that being the case I feel that the market will probably reach towards the $3.50 level above. If we can break above there, then we would fill the gap that started the previous week. The $3.75 level above should continue to be a bit of a “ceiling” in this market, so I don’t think that a break above there anytime soon.

If we did break down below the $3.25 level underneath, I feel that the market will go lower, reaching down to the $3.00 level. That’s an area that has a lot of significant psychological weight to it, so I think that we would find buyers in that area if we get down there.

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