WTI Crude Oil
The WTI Crude Oil market broke down significantly during the trading session on Wednesday, as we sliced below the shooting star from the Tuesday session. The market reached down to the $61 level, but I think that we could roll over towards the $60 level next, which extends down to the $58 level after that. If we can break down below the $58 level, this market could unwind rather significantly. Currently, it looks as if the breaking of the uptrend line and the retest of it suggests that we are going to see this market break down quite a bit. At this point, I think that any rally that appears is probably going to be yet another selling opportunity. If we were to break above the $64 level, then I might be convinced to start buying again. Right now, that looks very unlikely.
Natural Gas
The natural gas markets rallied a bit during the trading session on Wednesday, breaking above the $2.75 level. The market should continue to grind to the upside and the short-term though, but overall, I do like the idea of selling this market after rallies, especially on signs of exhaustion. The $3 level above is massive in its importance, and of course it psychological aspect. I think that a signs of exhaustion in this area could be a nice opportunity to get involved. If we break above the $3 level, the $3.20 level would next be another opportunity to search shorting as well. However, for those of you who are a short-term trader, you could start buying this market but would also have to be very careful as the volatility could cause significant danger for those of you who are overleveraged.
