WTI Crude Oil
The WTI Crude Oil market fell rather hard during Friday as we sliced through the 200 day EMA. However, we have found a bit of support in that area, so it looks likely to support the market. However, the weekly candle stick is a bit of a shooting summer so we have quite a bit of pressure in both directions right now. Simply put, if we can break above the Thursday candle, then I think that the crude oil market can go to much higher levels. There was quite a bit of fear on Friday as we are starting to see signs of potential recessionary headwinds, and that of course will bring down demand for crude. On the other hand, we have the OPEC members stepping away from their meeting and pushing it back to the month of June, meaning that we have a couple more months of production cuts ahead of us.
Natural Gas
Natural gas traders sold off on Friday, breaking down towards the $2.75 level. This is a market that continues to see quite a bit of volatility though, as buyers came back in and picked the market up. That being the case, it’s very likely that we continue to see a little bit of a bounce but that bounce will more than likely find sellers above.
To the downside I believe that there is significant support that extends from $2.60 to the $2.50 level underneath which has been a longer-term floor. If we were to break down below that level we could go as low as $2.25, but that seems to be very unlikely at this point. I believe that we stay in the range overall.
