WTI Crude Oil
The WTI Crude Oil market went back and forth during the trading session on Friday after the jobs number, as the $75 level seems to be a bit too much. Ultimately, I think that if we break down below the lows of both the Thursday and Friday sessions, we will probably pull back even further and that makes sense considering that Saudi Arabia and Russia both have suggested they are going to increase output, but at the same time we do have Iranian sanctions taking hold, and I think that will jump into the front of traders’ minds soon as well. I think a short-term pullback makes a bit of sense, but I see massive support at the $72.50 level. Otherwise, if we break above the $75 level, then we will target $77 rather quickly.
Natural Gas
Natural gas markets were all over the place during the trading session after the jobs number, breaking above the $3.20 level, and of course showing signs of support at the $3.10 level. Overall, I think that the market continues to be very choppy but I think also that we are overbought say the least. I think we need to pullback in order to find enough value to go long again, and I would love to see this market fall towards the $3.00 level in order to offer that trade. However, we may not have an opportunity as the $3.10 level will probably be supportive as well. I think that short-term charts are probably the best way to play this market, as we have seen so much in the way of bullish pressure but of course the market is overdone to say the least.
