WTI Crude Oil and Natural Gas Forecast

11 August 2017 5:00:15 AM

WTI Crude Oil

The WTI Crude Oil market initially tried to rally during the day, but found enough resistance above the $50 level on Thursday to turn around and fall significantly. It now looks as if we may try to break down, and if we move below the $48 level, I am more than willing to start selling crude oil again. I think that the market could go looking towards the bottom of the consolidation area again, near the $42.50 level. I do see support at the $47 level in the meantime, as well as the $45 level. Alternately, if we can break higher and reach above the $50.50 level, then we could see a bullish move towards the $52 level next. Overall, I am bearish of this market and I recognize that the oversupply will still be an issue.
WTI Crude Oil Graph 11 August 2017

Natural Gas

Natural gas markets exploded to the upside during the day on Thursday, closing just a bit below the vinyl $3 level. The $3 level is the beginning of massive resistance though, extending to the $3.10 level. As long as we stay below there, I’m looking for exhaustive candles to start selling as it should be a nice opportunity to take advantage of what has been a longer-term downtrend in a market that has been massively oversupplied. I have no interest in buying this market, because quite frankly this is a cyclical issue, and I believe that we will go looking towards the $2.75 level again, and then eventually break down below there but obviously is going to take some time to get down to that massive target of mine: $2.50. It is not until we break above the $3.25 that I would remotely consider buying this market, as it would be a complete repudiation of the downtrend.

Natural Gas Graph 11 August 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.

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