WTI Crude Oil

WTI Crude Oil traders bought hand over fist during the trading session on Friday to close at the top of the candlestick, and then break above the $55 level. Ultimately, I think that we are ready to go higher but there is a candlestick from early November that has me a bit concerned. However, if we can break above that candlestick, which I have an ellipse around, then we should go higher and reach towards $60. In general, I think that we are going to break out but we still have a little bit of noise above to perhaps make things a little bit dicey. Nonetheless, it’s only a matter of time before we go higher. With this, I think that pullbacks will continue to be bought as we are obviously trying to make a significant break out for the longer-term.

Natural Gas

Natural gas markets rallied a bit during the trading session on Friday, but we are still very depressed as far as pricing is concerned. Ultimately, I think that it’s only a matter of time before we rally from here because I think that the rally will be based upon going far too low and testing major support. Overall, I think there is a high likelihood of a relief rally, which should give us an opportunity to sell from higher levels and pick up a bit of real estate.

Ultimately, I think that the $2.75 level is resistance, just as the $3.00 level will. I look at levels above, and I’m waiting to see a certain amount of exhaustion that I can take advantage of. I have no interest whatsoever on buying natural gas, as it is extraordinarily overabundant and needless to say oversupplied.