WTI Crude Oil
The WTI Crude Oil market rallied slightly during the day on Friday, as we have seen extraordinarily high amounts of volatility. It looks as if the $71 level is trying to offer significant support, and I think that given enough time we will probably see the buyers step into this market. Perhaps the Friday session was a harbinger of the market looking for value. Perhaps we are starting to see a lot of support near the $70 level, and I think that we will eventually go higher. Ultimately, there are plenty of reasons to think that the oil market should continue to go higher, not the least of which will be Iranian sanctions. If we break down below the $70 level, then I think that we will find plenty of support underneath as well, especially near the $67.50 level. I think we have one more surge higher in the oil market left, and if the US dollar starts to sell off that should be a catalyst enough.
Natural Gas
Natural gas markets initially tried to rally during the Friday session, but sold off rather drastically as we sliced through the $3.20 level, and then reached towards the $3.15 level underneath. I believe that this point, the $3.10 level should be a target as well. If we get below there, then I think we could unwind down to the $3.00 level. The reason I’m so bearish in the short term is that we have a massive shooting star on the weekly chart, which of course is a very negative sign and of course we are overbought. At this point, I think that the market probably needs to pullback in order to find buyers again.
