WTI Crude Oil and Natural Gas Forecast

07 December 2017 8:22:15 AM

WTI Crude Oil

With a weaker than anticipated inventory number, the WTI Crude Oil market rolled over, and of course the lack of demand is very negative. The US dollar strengthening of course has a negative effect on this market as well, and I believe at this point we are going to go looking towards the $55 level. That’s an area that is massively supportive, but if we break down below there, we could reach down towards the $52.50 level underneath that has been resistance in the past. I believe that we continue to struggle, mainly because of high pricing in the crude oil market attracts plenty of American drillers as well, so I believe that no matter what happens, eventually we reach a top to this market. I don’t necessarily think that we are going to break down significantly, and perhaps melt down, but I do think that rallies are to be sold.

Crude oil

Natural Gas

The natural gas markets had a volatile session during the day on Wednesday, but rolled over to form a bit of a shooting star for the day. While this is a very negative candle, the reality is that there is a significant amount of support just below, especially starting near the $2.85 level, so I think it is only a matter of time before we get a supportive candle or a bounce that we can take advantage of. On short-term charts, it looks as if we are trying to form some type of double bottom on the hourly chart, but I think we will probably have another attempt to the downside today. Once that fails, and I think it will, it’s time to start buying as the overall consolidation continues. Natural gas continues to be volatile, but range bound.

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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now