WTI Crude Oil
The WTI Crude Oil market initially tried to rally during the day on Monday, but then rolled over rather significantly in a huge “risk off” move. The uptrend line should offer support, especially down at the $62 level. I believe that the market will eventually find buyers, but quite frankly this is a market that will continue to struggle with the idea of a potential trade war, which should bring down demand for crude oil. If we were to break down below the uptrend line, the market probably goes down to the $60 level. I believe that the $66 level continues to be very resistive, and I would point out that the MACD is starting to cross over again, suggesting that we are going to roll over in general. I think Friday will be crucial as to where we go next, as the jobs number comes out.
If you been following me for any length of time here at Daily Forex, you know that I am very bearish of natural gas. We initially tried to rally during the day on Monday, but then broke down to the $2.65 level. If we break down from there, I think that the market should then go to the $2.60 level underneath, as it is the beginning of the major support level that extends down to the $2.50 level. A breakdown below there would be very catastrophic, sending this market to very extraordinarily low levels. If we rally from here, I think that the $2.80 level will be even more resistive, and I would be more than willing to start selling at that level. Ultimately, I think that it will be volatile, but you need to look at this as a “sell the rallies” situation.