WTI Crude Oil
The WTI Crude Oil market rallied a bit during the trading session on Wednesday, gaining 1.6% as I record this. However, we are still in a very tight consolidation phase, and quite frankly that’s not a surprise as we have the OPEC meetings coming up over the next couple of days. The uptrend line underneath continues to offer support and should unless of course we get some other signal out of OPEC then the market is expected. If there is a massive production increase, that should weigh upon the value of oil, but right now I think the market is essentially sitting still waiting for the result. If we break down below the $64 level, that is a very negative sign and could send this market looking for $60. Ultimately, if we can break above the $67 level, the market will probably go to the $68 level which is the next resistance barrier. Clearing that, the market goes much higher.
Natural Gas
Natural gas markets have rallied roughly 1.39% as I record the video. We are testing the $2.95 level, but had seen previous resistance and that area, and the market sold off rather drastically once we got above it. I think that means we will probably see that happen again, but in the short term we could see a little bit of a rally. I recognize that there is a massive amount of noise between the three dollars level above and the $3.10 level after that. Exhaustive candles will continue to be good opportunities to short this market, because as you zoom out to higher intervals, it’s obvious that we have been for the most part consolidating over the last couple of years. We are much closer to the top of that range than the bottom.
