WTI Crude Oil and Natural Gas Forecast - 17 July 2017

17 July 2017 8:44:37 AM

By: DailyForex.com

WTI Crude Oil

The WTI Crude Oil market initially fell during the day on Friday, but turned around to break above the $46.50 level. In general, I believe that this has something to do with the US dollar rolling over, and of course we have recently seen quite a bit of short covering. I think the $47 level above will offer a bit of resistance, but if we break above there we could go looking at $48, and then eventually $50. I have a very hard time believing that this market can reach above $50 though, it would become an area where I would be looking to start selling. Alternately, if we break down below the $45 level, I think that’s a selling opportunity as well.

Crude oil

Natural Gas

Natural gas is a market that I am extraordinarily bearish on, as you can see that the 50-day exponential moving average has continue to offer resistance. I believe that the $3.00 level will also be resistance, so rallies at this point on short-term charts are selling opportunities. I believe that the resistance goes all the way to the $3.12 level above, so having said that I think we will eventually reach down towards the $2.85 level underneath, which has been supportive. I think if we can get below there, the market should then go looking for the $2.75 level after that. Ultimately, I believe that the natural gas markets will even extend all the way down to the $2.50 level, but that is a long-term call. Selling rallies continue to be the best opportunities for trading this market, taking a quick smash and grab type moves. I have no interest in buying this market, and don’t even have a scenario where I’m looking to do so.

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.

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