WTI Crude Oil and Natural Gas Forecast - 23 May 2018

WTI Crude Oil

The WTI Crude Oil market fell slightly during the day as the $72.50 level offered a bit of resistance. Iranian tensions have caused a bit of an issue in this market, but I think we started to run out of momentum during the day. After all, the market can’t go in one direction forever. Beyond that, I think there is a lot of confusion as to what happens next, as you can see just how choppy the sessions have been - even on positive sessions. Because of this, I think we may need to back up a little bit to find buying pressure, but I think there is plenty of support down to at least the $70 level, if not the uptrend line below there. In other words, look at pullbacks as an opportunity to pick up value in a very strong market.

Crude oil

Natural Gas

Natural gas markets broke towards the $2.90 level during the day on Tuesday, breaking the top of an upward daily channel. That’s a very strong sign, showing that we are in fact picking up momentum. On the hourly chart, we are forming a bit of shooting star, but I suspect that will only be an attempt to retest the previous resistance in the form of the daily uptrend channel, and therefore should offer a buying opportunity. Obviously, if we can break above the top of the candle for the day, that would be a buying opportunity as well. It currently looks as if the $2.80 level should offer a significant amount of support for the market, and a short-term “floor.” Short-term traders will continue to buy dips in this market from what I see on the chart.

Natural gas

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.