WTI Crude Oil
The WTI Crude Oil market initially fell during the Tuesday trading session but we turned around to break above the top of the neutral candle from the Monday session. If we can break above the range for the day, I think it’s only a matter of time before we test the vital $55 level above. That is an area that should be resistive, but I think it’s only a matter of time before we break above there and extend the gains. In the short term, we could very easily see some type of pull back, but I believe that will be thought of as value. It’s not until we break down below the $53 level that I would be concerned in general. Even then, I suspect that the $50 level will continue to be even more supportive. A lot of hedge funds that I speak to have been getting bullish of this market, and I think we will continue to see a “buy the dips” mentality.
The natural gas markets initially tried to rally on Tuesday but found the $3.00 level above to be resistant yet again. There is a massive amount of resistance above, reaching towards the $3.10 level. I think it’s only a matter of time before the exhaustion comes back into the marketplace, and we start selling yet again. Quite frankly, I have no interest in buying this market, although I know several short-term traders who have been buying closer to the $2.87 level. The $3.00 level is where US fracking companies start to see profits again, so there is an extraordinarily large amount of supply in that region. Because of this, I do not think we are going anywhere soon, as we continue to knock around.