WTI Crude Oil and Natural Gas Forecast - 14 November 2018

WTI Crude Oil

The WTI Crude Oil market has broken down significantly during the trading session after initially gapping on Tuesday. We are now pressuring the $55 level, losing 8% for the day. This is an absolute wipeout for oil, and I think now that we have retraced the entire latest move, we are getting to the point where there is enough blood on the streets that value hunters will come back into play. Ultimately, I would wait for some type of supportive daily candle to start buying, but you clearly can’t be selling at this point. We have fallen far too low to start selling now, and the flush seems to have just happened. It’ll be interesting to see what happens next, but be patient, because if we do start having value hunters come back into this market, there should be one hell of a ride higher.

Crude oil

Natural Gas

Natural gas markets have exploded to the upside again, gapping right off the bat perhaps due to the oil markets falling apart. We have cleared the four dollars level significantly and have even enclosed towards the top of the range. At this point, the market is overbought and it needs to break down significantly. If we can break below the bottom of the candle stick for the trading session on Tuesday, then we should fall to reach the bottom of the gap, perhaps going down to the $3.80 level, but maybe even the $3.50 level after that. I would not be a buyer right now though, because only the truly foolish would get involved at this point. We are overbought by any ridiculous metric you can throw at this chart. A pullback is what we need at the very least.

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.