WTI Crude Oil and Natural Gas Forecast - 16 June 2017

WTI Crude Oil

The WTI Crude Oil market fell again during the day on Thursday, reaching towards the $44 level. I think that given enough time, the sellers will return on any rally’s, and the $45 level above should be resistance. Ultimately, the market continues to be volatile but with a pressure. I think that the $43.50 level underneath is probably where we are heading, and I believe that the oversupply issue in the oil market continues to be a major issue when it comes to this. Given enough time, I expect the market to sell off yet again as we continue to struggle. I think that the market is a long way away from turning around, so therefore I don’t really have a scenario in which a willing to buy, and I believe that the absolute “ceiling” is the $47 level.

Crude oil

Natural Gas

The natural gas markets broke higher during the day on Thursday, slicing through the $3.00 level. That’s a very bullish sign, but I still see a significant amount of resistance is the bow, especially near the $3.10 level. Because of this, I’m looking for some type of exhaustive candles to start selling again, as a natural gas markets have been oversupplied for some time. Yes, the build in the inventory number was less than originally anticipated, but quite frankly “less bad” is hardly ever a reason to own an asset. Because of this, I feel that it’s only a matter of time before we start selling off again and the first signs of exhaustion will have me shorting this market and aiming for the $2.90 level underneath, and the $2.75 level after that. Buying isn’t even a thought and I believe that the 200-day exponential moving average will continue to offer dynamic resistance as well.

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.