WTI Crude Oil and Natural Gas Forecast - 22 June 2017

WTI Crude Oil

The WTI Crude Oil market tried to rally during the day on Wednesday, after a stronger than expected inventory number. However, we turned around to break down below the $43.50 level. Not only that, we broke down through significant support and even touched the $42 level under that. This is an area that’s been massively supportive, so if we can break down below their, the market will break down significantly and go looking for the $40 level. Oil simply cannot seem to get out of its own way, and that being the case I think it’s likely that every time we rally, it’s a selling opportunity as the market is certainly bearish, but we may have gotten a little bit of head of ourselves, so rallies can be looked at as nice opportunities going forward. I have no interest whatsoever and buying this market.

Oil

Natural Gas

The natural gas markets tried to rally during the day, but turned around to form a shooting star. The shooting star suggests that we are going to continue to see bearish pressure, reaching to lower levels, perhaps even the $2.75 level. The shooting star suggests that the gap above is going to continue to cause quite a bit of bearish pressure, so I believe that the $3.00 level is essentially the “ceiling” in the market. The oversupply in the natural gas market continues, and I do not believe that we are anywhere near seeing some type of turnaround in the overall trend and a massive pickup in demand.

Longer-term, we could go as well as the $2.50 level, which has been a major base in this market for some time. A breakdown below their turns the entire last year or so into a massive head and shoulders that could send the markets tumbling rather rapidly.

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.