WTI Crude Oil
The WTI Crude Oil market fell significantly during the session on Monday, dropping 2%. However, there is plenty of support just below at the $63 level, and from what I suspect, the $62 level as there is an uptrend line there. I believe that if we can stay above the uptrend line, the market will eventually bounce and give us an opportunity to go long. It is because of this that I am not willing to short the oil market, and this being the case I am on the sidelines for the next 24 hours. If we form a hammer or some type of supportive candle from the $63 level, I am more than likely going to jump into this market and start buying again. However, if we break down below the uptrend line, then I think the market will probably drop to the $58 level.
Natural Gas
The natural gas markets dropped 5% yet again during the trading session on Monday, as we have absolutely collapsed. Because of this, I think that we will go towards the bottom of the overall consolidation for most of the last year, reaching towards the $2.75 level. However, we have a significant amount of volume into this market, and I think that we will eventually get there. I would rather see some type of bounce first though, because of this point you are chasing the trade. That being said, if it does rally, the last thing you want to do is start buying, because we have clearly left the bullish part of the year, and the seasonality is no longer working in favor of natural gas. Sell the rallies continues to be my mantra, as natural gas supply is about to start getting stronger again.
