WTI Crude Oil and Natural Gas Forecast - 23 July 2018

WTI Crude Oil

The WTI Crude Oil market gapped lower to start the day on Friday, but then rallied. The rally was a bit soft though, and it looks as if we are continuing to see bearish pressure. The gap of course is a sign of negativity, and it’s likely that we will go looking towards the uptrend line underneath. The $70 level above is massive resistance, and an area where there is a lot of supply. I think that it is likely to see a lot of trouble in this area, so therefore I think that it wouldn’t take much to push the market lower. If the US dollar continues to strengthen, that will also put a lot of downward pressure on this market. The uptrend line though should be rather supportive. If we were to break down below the $65 level, then the market could unwind quite drastically. Until then, I think it’s a “sell on the rallies” type situation.

Crude oil

Natural Gas

Natural gas markets initially tried to rally during the trading session on Friday but turned around to form a bit of a shooting star. The fact that we couldn’t even hang onto the short term gains after the massive bullish candle on Thursday tells me just how soft this market is. The $2.70 level is a significant support level, and of course a short-term target. Even if we do rally from here, I’m waiting to see selling pressure at $2.80 and $2.85 after that. I believe that the market will continue to be range bound longer-term, and we are towards the bottom of that range. However, we don’t see any real signs of recovery quite yet on the chart. At this point I think the $2.60 level is longer-term support to pay attention to.

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.