WTI Crude Oil
The WTI Crude Oil market rallied significantly during the trading session on Tuesday, reaching towards the $64 level before pulling back slightly. We gained over 2%, which of course is a very bullish sign and suggests that perhaps we will continue to see buyers jump into this market. Not only do we have inventory numbers to pay attention to, we also have the Federal Reserve releasing a monetary policy statement today. Ultimately, the question is whether we are going to get 3 or 4 interest rate hikes this year. That will have a massive effect on the US dollar, and if it into pushing that currency higher, it could put bearish pressure on this market. The downtrend line underneath on the daily chart suggests that we are still very much in an uptrend, and if we can break above the $64 level, one could make an argument for a move based upon the potential ascending triangle to the $70 handle.
Natural gas markets rallied significantly during the trading session on Tuesday, showing signs of life again. However, we are at a place in the market that is far too low for a lot of traders, and the bottom of the overall consolidation area that I have marked on the chart. I believe that the $2.50 level is massive support, and I believe that it will continue to keep this market somewhat afloat. In the meantime, I believe that we are likely to see some type of rally, but that rally should be a nice selling opportunity. I believe that the $2.80 level is the initial resistance area, followed by the $3.00 level. If we were to break down below $2.50, this market could come completely unwound.