WTI Crude Oil
The WTI Crude Oil market did very little during the session on Tuesday, as the Americans would have been away for Independence Day celebrations. The $47.50 level above is resistive, as it has been both support and resistance recently. Ultimately, some type of exhaustive candle should be a selling opportunity, as the market will then go looking towards the $45 level after that. The $45 level should be massively supportive, so a bounce from that would not be a surprise. Alternately, if we can break above the $48 level, I think the market could continue to go higher, perhaps reaching towards the $50 level. The market is most certainly very negative, and I think that the oversupply of crude oil will continue to be an issue in the market. The market continues to struggle longer-term, and the most recent move is probably more indicative of a relief rally.
Natural Gas
The natural gas markets rallied slightly during the day, but the Tuesday session is a very thin due to the fact that the Americans were away. The $3.00 level above should be resistive, and I think that there is a band of resistance all the way to the $3.10 level. Any type of exhaustion or resistive candle should be and I selling opportunity as we then could go down to the $2.85 level. A breakdown below there since the market looking for the $2.75 level and then eventually the $2.50 level underneath. I have no interest in buying this market, I believe that the natural gas market is oversupplied, and will continue to be for the near future. Because of this, selling rallies will be the best way to trade this market, or perhaps some type of breakdown that shows a continuation of the bearish pressure which I believe is quite strong in this commodity.
