WTI Crude Oil and Natural Gas Forecast - 1 March 2016

WTI Crude Oil

The WTI market rose during the course of the day on Monday after initially trying to fall below the $32 level. Ultimately though, we found enough resistance of the $34 level to turn things back around and it looks as if the sellers are going to continue pressing. After all, the Friday session was very negative forming a shooting star, and that of course normally means that the sellers are going to take control again. We are at the top of the overall consolidation area, so having said that it makes sense that we would fall from here as well.

If we can break down below the $32 level, we feel that the market should continue to go much lower, perhaps to the $28 level, and even below there. Ultimately though, this looks like a market that has a massive amount of bearish pressure in it, and as a result I believe that the sellers will continue to punish.

WTI

Natural Gas

The natural gas markets fell during the day on Monday, showing even more bearish pressure as the market tested the lows yet again. Ultimately, if we can break down below the bottom of the range for the session on Monday, the market should then try to drop down to the $1.60 level and perhaps even lower than that. A bounce from here is a selling opportunity given enough time, and with that being the case I will not hesitate to short resistive candles after these rallies.

The longer-term downtrend of course is very much in effect, and as a result it’s very difficult to even think about buying at this point. The longer-term downtrend is based upon an oversupply of natural gas, which of course has not changed. The fact that we are getting fairly close to spring in North America is not going to help this market either. I am a seller again and again.

NatGas

Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.