WTI Crude Oil
The WTI Crude Oil market had a volatile session as one would expect, because we got the Crude Oil Inventories announcement. While the headline number was very bullish, the distillate numbers were a very mixed picture, and of course the fact that a lot of the headline number was due to Thanksgiving Day driving, it’s likely that traders were starting to focus almost immediately on OPEC and the hype surrounding the idea of them possibly cutting production. At this point, it looks less likely that it once did, so it’s possible we may see more negativity. From the technical analysis point of view, we have pulled back towards the $57 level, which was previous resistance. Because of this, we may continue to see buying pressure, but at this point I think it’s easy to wait for the market to break on one side or the other of the daily candle on Wednesday to start buying or selling. I am simply going to allot the market decide which direction we go.
Natural Gas
Natural gas markets continued to rally during the trading session on Wednesday but we did struggle a bit at the $3.225 level. Because of this, I’m waiting for some type of exhaustion to possibly sell as we continue to bounce around in a range, but a break to a fresh, new high would also be bullish. However, we have recently seen massive amounts of bullish and bearish action, and quite frankly I think natural gas is probably one of the most dangerous markets to trade. In general, and likely that the volatility should keep most traders in the CFD market at best, and with small position sizing as the last thing you want to do is open up with yet another gap on the future market.
