WTI Crude Oil and Natural Gas Forecast - 2 August 2016

By: DailyForex.com

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the day on Monday but then turn right back around to slam into the $40 handle. With this being the case, it looks as if the sellers are going to continue to be very interested in this market. I think we could get a little bit of a bounce off of the $40 level, but given enough time I feel that bounces will offer selling opportunities on signs of exhaustion as we are most certainly in a negative trend. On top of that, it looks as if the 50-day exponential moving average could very well cross back underneath the 200-day exponential moving average. That of course is a very negative sign. Ultimately, that should bring in longer-term sellers yet again.

Crude oil

Natural Gas

Natural gas markets initially tried to rally during the day on Monday, but turned right back around to slam into the $2.75 region. However, I recognize that we have been consolidating overall, and the market will more than likely continue to do so. The $2.65 level should of course be supportive yet again, as we continue to go back and forth. I believe that eventually we will find buyers, and it’s possible that the markets may turn things back around to form a buying opportunity. With that, I believe that the market will more than likely find enough buying pressure to try to reach the $3 level given enough time, as it is a large, round, major number. Quite often, the markets will attempt to break through those areas more than once or twice.

So having said that, I believe that short-term sellers will probably take advantage of this opportunity, but eventually buyers will pick up to the value that could be shown closer to the $2.65 level as there has been so much in the way of support in that general vicinity.

natural gas

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.