WTI Crude Oil and Natural Gas Forecast - 29 November 2018

WTI Crude Oil

The WTI Crude Oil market broke to the downside again on Wednesday, reaching towards the $50 level. This is an area that of course is psychologically significant, so it makes sense that we could see a bit of support here. However, if we break down below the $50 level, then the market will probably go down to the $48 level. However, I would expect to see a lot of support at the $50 level, as it is such an important figure. It’s been an important level more than once in the past, so I would expect a significant fight here. This is why I think that if we break down below the $50 level on a daily close, this market could pick up more momentum. If we do rally from here, I think that the $55 level will be massive resistance.

Crude oil

Natural Gas

Natural gas markets rallied significantly during the trading session on Wednesday, reaching the $4.75 level. That’s an area that of course is rather important as it is the beginning of major resistance extending to the $5.00 level. I think that’s the high for the year, but it is rather cold in the United States of demand is still certainly therefore natural gas. That being said, I think that it’s only a matter time before suppliers flood the market with more of the commodity, as these high prices are very attractive.

The $4.00 level underneath is massive support though, and I think it would be very difficult to break down through there even though I like the idea of selling rallies. I would look to short term charts the place these trades, as it can help you find tune your entry. If we did break above the $5.00 level, then we can really take off as it would be such a major hurdle overcome.

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.