WTI Crude Oil and Natural Gas Forecast - April 2018

WTI Crude Oil

The WTI Crude Oil market initially rallied on Thursday but found enough resistance just below the $69.50 level to turn around and form a shooting star for the day. I think that the market will continue to find buyers on pullbacks, and that pullback is probably coming now. A breakdown below the bottom of the range for the session should send this market looking for the $66 level underneath. I think there’s more than enough support underneath though, so not looking to sell this market, rather I am looking to pick up value at levels below that appear likely to be tested. The uptrend line still holds intact, so I don’t have any interest in shorting quite yet. If we did breakdown below the uptrend line though, this market could unwind to the $60 handle. I think that the tensions in the Middle East will continue to put a bit of buying pressure into this market.

Crude oil

Natural Gas

Natural gas markets formed a shooting star on Wednesday, and then on Thursday broke the bottom of that shooting star rather significantly. In fact, we reached towards the $2.65 level, and I think we could go lower, perhaps down to the $2.60 handle. I think that is an area that is massive support, but if we broke down below there it’s more of a “zone” than anything else. If we break down below the $2.50 level, that support level would be completely smashed, and we would unwind rather rapidly. This is a very negative daily candle, so I think this continues to be a “sell the rallies” type of situation, especially on short-term charts if you get the opportunity to take advantage of those moves. I have no interest in buying this market, temperatures are going to go higher in both the United States and Europe soon.

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.