WTI Crude Oil
The WTI Crude Oil market tested the $38 level on Thursday, and then bounced enough to form a hammer. With the markets being close on Good Friday we didn’t get any action, but at the end of the day it still suggests that we are going to bounce from here and perhaps try to reach the $42 level yet again. That’s an area that should bring in quite a bit of resistance, so I believe that if we rally from here, we should find selling opportunities above. For the very short-term though, we are more than likely going to see buyers push this market higher so it really comes down to what type of time frame that you are looking at.
Natural Gas
The natural gas markets bounced slightly during the course of the session on Thursday, but there is still more than enough bearish pressure overall to keep this market going lower. With that being the case, the market should then grind its way down to the $1.60 level. Any rally at this point in time will more than likely have a lot of bearish pressure to deal with, so I have no interest whatsoever in buying natural gas. We have more than enough reason to think that this market will continue to drop, as there has been quite a bit of supply in the market, and we are quite frankly running out of storage for the commodity.
Ultimately, I believe that the absolute “ceiling” in this market is the $2 handle, so with that being said there is no interest in buying this market, so having said that I am actually waiting for exhaustive candles, and of course breakdowns below the bottom of the range for the Thursday session in order to start selling again and again, I recognize there is no other play in this market as bearish as it has been.
