WTI Crude Oil and Natural Gas Forecast - 7 April 2017

WTI Crude Oil

The WTI Crude Oil market rallied during the day on Thursday, reaching towards the top of the shooting star from the previous session. The $52 level of course is a large, round, psychologically significant number, but more importantly it’s the 61.8% Fibonacci retracement level from the selloff. Because of this, I believe that today is going to be a crucial session, and it’s simple at this point, if we can break above the $52 level, the market should continue to go higher. Alternately, if we turn around and form a negative candle again, or even a resistive one, we could see the market dropped towards the $50 handle below. Nonetheless, expect quite a bit of volatility.

Crude oil

Natural Gas

Natural gas markets went back and forth during the day on Thursday, as we had an extraordinarily volatile session. The $3.25 level continues to be supportive, but a breakdown below the bottom of the candle should send this market down to the $3.10 level underneath. If we can break above the top of the shooting star from the Thursday session, the market will then challenge the 61.8% Fibonacci retracement level at the $3.35 level. If we can break above there, then the target is $3.50 above there. If we managed to break below the $3 level, the market should go much lower. I think that fundamentally the natural gas markets still have a lot of issues, and with the jobs number coming out today there could be quite a bit of volatility. Either way, I think you’re going to have to purchase from a longer-term perspective, no matter what your bias is. That means using a small position and allowing for the almost certainty of choppy conditions. Currently, it looks as if the market at an inflection point, and will be making a longer-term decision soon.

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.