WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the course of the session on Friday but found the area close to the $41 level to be far too much. That being the case, the market turned right back around to form a bit of a shooting star. With this, it looks like the market is ready to struggle again and could possibly pullback from here. Keep in mind that the US shale producers out there are looking to get involved in the market at the $40 level, so this should continue to cause quite a bit of a problem for buyers. On top of that, this is an area that had previously been supportive, so it should now be resistive. Ultimately, the market will continue to find sellers again and again, so I am more than willing to sell on a break below the bottom of the candle for Friday.
Natural Gas
The natural gas markets fell during the course of the day on Friday, showing signs of resistance yet again. Ultimately, this is a market that should continue to go lower though, and even if we rally from here I have no interest whatsoever in buying. The $2 level above should be massively resistive, and it is very likely that the sellers will continue to run this market over the longer term. Any exhaustive candle above should be a selling opportunity.
At this point in time, there is far too much supply out there to keep going higher, although US drillers have stepped away from the fields due to the lack of pricing power. However, given enough time there is more than enough supply out there to take care of any demand that we should see anytime soon, plus we have the reality of springtime coming to the northeastern part of the United States as well.
