WTI Crude Oil

The WTI market finally broke down through the $50 level significantly, and it looks as if we are ready to go much lower. Because of this, I think that the market will continue to struggle overall and drop drastically. In fact, the flush lower has been rather strong as buyers have been crushed at what should have been a strong support level. Because of this, I believe we will continue to see a bearish pressure in this market, and the consolidation that had recently been holding up measures for a potential move down to the $45 level. I think there are serious concerns about global growth, and that, of course, will continue to weigh upon energy pricing. Beyond that, the US dollar has been strong and of course, there have been so many waivers for sanctions against Iran, that any global shortage of crude oil is nothing but a distant memory.

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Natural Gas

Natural gas markets rallied rather significantly during trading on Tuesday, filling the gap from the Monday open, and at this point, I think it’s only a matter of time before we see some type of exhaustion come back into the market that we could start selling again. I think that traders will continue to look at this as an opportunity to fade rallies, as the 50 day EMA is turning lower, and of course, the $4.00 level should offer resistance from a psychological standpoint. In fact, the closer we get to the $4.00 level, the more interested I am in shorting this market. I believe it is only a matter time before the sellers come back, and that we go low enough to fill the gap down near $3.26. I have no interest in buying this market.

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