In this video, the Trader Guy looks at commodities Crude Oil and Natural Gas for the July 11th session.
WTI Crude Oil — We did break down a little bit after trying to rally during the trading session on Friday. We retested the bottom of the descending triangle pattern that I have been following and now ended up forming a shooting star. It tells us that we are more likely to find support in the next supportive area of $43 or possibly even break down to the $40 level. Rallies at this point will invite selling opportunities and therefore I am still negative on this market.
Natural Gas — We rose and I think at this point in time we are simply consolidating. The reason is that we found support at $2.70 and we have been so overextended. The $3 level is a major barrier and we are going to test this level several times and probably break after that. So, I think pullbacks should continue to offer value. If we can breakout to the upside over the top of the range, is reason enough to go long as well. I see support at $2.60 and most definitely at $2.50, which is essentially the floor in this market. This is a buy only market at the moment, although it is going to be a bit choppy.
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Post tags: Natural Gas, technical analysis, WTI Crude oil
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