WTI Crude Oil and Natural Gas Forecast - 16 April 2018

WTI Crude Oil

The WTI Crude Oil market continues to try to go higher during the trading session on Friday, but as you can see struggled a bit. The $68 level should continue to be an area of resistance, but I think if we can break above that level, I think that the market should then go to the $70 level. I believe that short-term pullbacks will be a buying opportunity, as the uptrend line has kept this market intact to the upside. I think that if we were to break down below the uptrend line, then of course things change. I believe that the market should have plenty of support at the $66 level, and if the US dollar can continue to struggle, that could also send this market higher. With tensions in the Middle East, it’s likely that oil will continue to have a bit of a bit underneath it.

oil

Natural Gas

After a downgrade buy the EIA as far as production is concerned for 2018, that lifted natural gas markets. We also had a bullish inventory number this week, so that has provided a little bit of a boost. However, I think there’s plenty of resistance above, especially near the $2.85 level, and of course the $3.80 level after that. I’m looking for signs of exhaustion on a daily candle that I can start selling, with the $2.60 level being a target, and an area that begins a significant resistance down to the $2.50 level. If we were to break down below the $2.50 level, I think that the market could then breakdown significantly. Natural gas is a market that I sell only and have no interest whatsoever in buying as longer-term we still have major issues.

natgas

Christopher Lewis

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.