WTI Crude Oil and Natural Gas Forecast - 18 April 2017

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WTI Crude Oil

The WTI Crude Oil market initially tried to rally on Monday but rolled over slightly. I still think there’s plenty of support below, but it’s likely that we may have to pull back in order to find enough support to extend the longer-term moved to the upside. I think the $52 level as the first area where we will find buyers, and then perhaps the $51 level after that. A supportive candle should send this market looking towards the $55.50 level above, as that has been my longer-term target for some time and has previously offered resistance. Currently I’m not interested in selling this market, although I do recognize that the pullback probably needs to happen, I prefer to trade with the strengthening uptrend.
Crude Oil Daily April 18 2017

Natural Gas

Natural gas markets fell during the day as the $3.25 level has offered enough resistance to keep the market down. However, you can see that the low was higher than the previous couple of sessions, highlighted by a hammer from the Thursday session. That is right on top of the gap that has shown so much strength in this market. The 50-day exponential moving average has broken above the 100-day exponential moving average just below there, so I believe that there are plenty of reasons to think that the market is going to continue to go higher. The market then it should go to the $3.33 level above, which is massively resistive. If we can break above there, then the market is free to go to the $3.50 level above there.

I don’t have any interest in shorting this market until we break down below the moving averages, the gap, and even the $3 level underneath. I believe that the market will continue to find buyers on dips in general, so with this I believe the rally continues.

Natural gas Daily April 18 2017

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.