WTI Crude Oil and Natural Gas Forecast - 29 June 2017

WTI Crude Oil

The WTI Crude Oil market rallied during the day on Wednesday, breaking above the top of the shooting star from the previous session. We are approaching the $45 level, an area that of course has a certain amount of psychological significance, and of course the 50-day exponential moving average. The fact that we close to the very top of the range for the day is a very bullish sign, but we are in a longer-term downtrend. With that in mind, I am a seller only. I’m looking for signs of exhaustion to start taking advantage of, as the oversupply continues to be an issue when it comes to oil. Once I get and exhaustive daily candle, I am short of this market and aiming for the $42.50 level again.

Oil

Natural Gas

Natural gas markets rallied during the day, but you can see gave back about half of the candle. By forming a bit of a shooting star, I think that if we can break down below the bottom of the candle for the day, the market should go looking for the $3 level, and then the $2.91 level under that. The longer-term trend is to the downside, and I am still looking to sell as there is a massive oversupply issue when it comes to the natural gas markets. Yes, we do get a little bit of a rally due to the outlook for US temperatures going higher, but in the end, it’s a structural problem that the market is no bullish scenario at all. I believe that selling rallies that show signs of exhaustion will continue to be the way most players in the market approach this situation, and therefore I don’t have any interest in buying and believe that the real money is still going to be made to the downside.

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.