Natural gas markets rally during the trading session on Wednesday only to find sellers at the 50 day EMA. The 50 day EMA is painted in red on the chart and sloping lower. At this point, the question is whether or not we can continue to go lower. Natural gas markets initially rallied during the trading session on Wednesday, reaching towards the 50 a.m. before we rolled over and broke lower. At this point, the $2.60 level should be support, but if we can break down below there I think that the natural gas markets will continue to show the negativity that could send this market down to the $2.50 level. That has been the “floor” in the market and should continue to be so. That being said, we have made a “higher high”, so it’s possible that the market could continue to grind higher but that sh
Natural gas markets broke through a major support level to kick off the week, gapping below the vital $2.75 level. At this point, the market is certainly broken. Natural gas markets gapped lower to kick off the trading session on Monday, but then turned around to reach towards the $2.75 level. We found resistance there, and then fell again. At this point, it looks as if the market is oversold but quite frankly you can’t be a buyer of natural gas at these low levels, as we have broken through the major support. That being said, the $2.50 level underneath is massive support as well, so I think that’s probably where we find buyers again. This is a market that will continue to see sellers but obviously we have gotten so oversold that it’s only a matter of time before buyers will come back in,
The crude oil markets continued to consolidate during the trading session on Thursday as we are essentially stuck in the same area that I have been talking about for several days. WTI Crude Oil The WTI Crude Oil market pulled back a bit during the trading session on Thursday, as we continue to consolidate between the 20 day EMA underneath, and the 50 day EMA above. We have recently seen a lot of bullish pressure in this marketplace, so it’s not a huge surprise to think that perhaps we will eventually get a breakout. Obviously, after the massive amount of technical damage that has been done in this market there will be a lot of traders out there a bit nervous about going long. Because of this, I think it could be a bit difficult to continue to go higher, but eventually I believe the buyers
Natural gas markets rallied a bit during the trading session on Thursday, breaking above the $3.50 level. This of course is a good sign but I think that what we are looking at is a scenario where there is a massive amount of resistance above, and I do think that the seasonality is starting to turn against natural gas. Natural gas markets tried to rally during most of the trading session on Thursday but continues to struggle above the $3.50 level. Because of this, I think it’s only a matter time before market participants roll over again, as the $3.75 level has been so massive in its resistance. I think if we can break down below the 20 day EMA, pictured in green on the chart, then I think we will go looking to fill the gap underneath. Natural gas markets are oversupplied, but obviously we
Crude oil markets rallied a bit during the trading session on Tuesday, using the large, round, psychologically important levels, and the support from lower levels to turn things around. The WTI Crude Oil market rallied a bit during the trading session on Tuesday, using the $50 level as support. The 20 day EMA underneath is starting to turn higher, and it sits just below that level. The 50 day EMA above is offering resistance, and as I have said recently, I think the next move will be based upon a break of one of those levels. If we can break above the 50 day EMA, that could send this market much higher, perhaps reaching towards the $57.50 level, perhaps even the $60 level. At this point, I think pullbacks will continue to find plenty of support though, and I do think that the market will c
Natural gas markets have recently gapped higher but is starting to show cracks in the ice again, as we have gotten far ahead of ourselves. As previously mentioned, I think there could be a selling opportunity near the $3.75 level. We have fallen from there. Natural gas markets spiked early on Tuesday, reaching towards the $3.75 level before falling from there. We have reached to the $3.50 level, and it now looks as if we are ready to fall and try to fill the gap. At this point, it looks likely to continue to fall from here, as we have certainly got ahead of ourselves due to the short-term cold snap. Ultimately, this is a market that I think will continue to sell off as there is far too much in the way of supply out there to have demand chew through. Looking at the candle stick for the trad
Natural gas markets gapped higher to kick off the week, slicing through the $3.50 level in early trading. This is an extraordinarily bullish sign, but at this point I think if you are patient enough there is an even better opportunity awaiting you. Natural gas markets gapped higher to kick off the week, breaking above the $3.50 level in early trading. At this point, I think there is plenty of resistance above, and I am simply waiting for some type of exhaustive candle in order to start shorting again. I believe the $3.75 level above is also resistance, and most certainly the $4.00 level will be as it is a large, round, psychologically significant figure. Overall, I believe that the natural gas markets will continue to rollover, as we head towards Spring contracts in the **res markets. Howe