WTI Crude Oil and Natural Gas Forecast - 25 April 2016

WTI Crude Oil

The WTI Crude Oil market struggled at the $44 level, an area that previously was massive support. Because of this, it looks as if the market will struggle to get above, and the fact that we formed a shooting star for the Friday session as well as the Thursday session tells me that we will more than likely pull back from here. However, there is still a significant amount of support just below. Because of this, it’s very likely that we will see quite a bit of volatility, and with this I think that when we break down we will more than likely reach towards the $42 handle given enough time. At that area though, I would anticipate that there would be buyers reenter the market. Short-term trading is about all you can do in this market.

Crude oil

Natural Gas

The natural gas markets initially fell during the day on Friday, but turned back around to form a massively bullish candle, breaking above the top of the shooting star from both Thursday and Wednesday. With this, we closed at the $2.13 level, and that looks very bullish to say the least. However, there is so much in the way of resistance above and of course far too much in the way of supply for demand to wiping out. Yes, we have been using a bit more natural gas lately, but this is a long-term downtrend that essentially keeps me from buying under any circumstance.

Given enough time, I do think that we break back down, because after all we are starting to enter warmer weather in the Northeast United States, and of course we are running out of storage at this point. Yes, we do have an extraordinarily low amount of drillers out there right now, but it is going to take a significant amount of time to run through the supply that we currently have.

natural gas

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.