WTI Crude Oil and Natural Gas Forecast - 5 October 2017

WTI Crude Oil

The WTI Crude Oil market initially tried to rally on Wednesday but was turned around at the $50.75 level. There was so much in the way of bearish pressure that we turned around and broke below the $50 level to form a shooting star. The shooting star suggests that we are going to continue going lower, and that we may test the vital $49 support level. I think at this point, the crude oil markets look like they are ready to sell off again. However, this is an area that there is a lot of noise based around, so I would expect very choppy conditions. If we were to break above the $51 level, then I think we go back towards the highs. Otherwise, a breakdown below the $3 handle, the market could fall apart.

WTI Crude Oil

Natural Gas

Natural gas markets rallied during the day on Wednesday, as we continue to see extraordinarily volatile conditions. I believe that given enough time we will see the markets break down again, and I think that the oversupply continues to be a major issue. Quite frankly, this is a market that continues to offer selling opportunities, as there is a massive amount of supply above the $3 level. However, it’s also very volatile market, so being patient and waiting for rallies will probably pay off better than any other type of trading that I can think of. I believe that the $2.85 level underneath is massive support, and therefore will be difficult to break down below. However, if we do I think we will probably go looking towards the $2.75 level after that. Overall, buying natural gas is almost impossible to do as there is such a massive supply overhang in the markets.

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.