WTI Crude Oil
The WTI Crude Oil market has initially rallied during the trading session on Thursday but turned around to form a bit of a shooting star. The $63 level underneath should be supportive, as it was an area that has been noisy recently. I believe that the market will continue to go higher, but it’s likely that we will continue to see noisy conditions. The US dollar got a bit of a reprieve during the day as Donald Trump suggested that he wanted to see a stronger US dollar, but at the end of the day, “the proof is in the pudding.” I suspect that this pullback is going to simply be another opportunity to pick up a value on dips. Ultimately, I believe that we should get an opportunity to pick up oil “on the cheap.” I believe that if we break down below the $63 level, then we go looking towards the $60 level.
Natural Gas
Natural gas markets, of course, tried to rally during the day as well but gave back over half of the gains. We are starting to get overbought, and I think that the large amounts of volume that is starting to come into the market suggests that there are plenty of sellers above. Longer-term, it’s likely that the overall trend continues, and we are at the top of the consolidation that we have seen. I think that if we can break down below the $3.33 level, the market should continue to go lower, perhaps reaching towards the $3.10 level. I believe that the natural gas markets are starting to get well ahead of itself, and I think that as we are getting close to the end of the bullish season for natural gas, it would make sense if we roll over. If we do roll over, we could be looking at a move towards the $3 level underneath, possibly even lower than that.
