WTI Crude Oil and Natural Gas Forecast - 11 January 2019

|

WTI Crude Oil

The WTI Crude Oil market pulled back a little bit during the trading session on Thursday, turning around to show signs of support. The 50 day EMA above should be resistance, and I think if we can break above that level, the market should then go to the $55 level next, perhaps even the $60 level beyond that. At this point though, I think we are running out of momentum after the major break out and I think the $50 level underneath should be supported now that we are through it. Beyond that, the 20 day EMA sits just below there so I think it’s only a matter time before the buyers come back. If the US dollar continues to soften, that could give us a little bit of a boost in the crude oil market as well.

Crude oil

Natural Gas

Natural gas markets initially tried to rally during the trading session on Thursday, breaking above the $3.00 level again but then rolled over. This is a very negative looking candle that has formed, but I think ultimately we are looking at a scenario which we have gotten far ahead of ourselves to the downside so it would not surprise me at all to see a bounce from here. In fact, that’s what I’m hoping to see and I would love to see the gap above get filled. That would drive this market towards the $3.30 level where I am more than willing to start selling again. I think that from that level all the way to the $3.50 level is massive resistance. I’m looking for signs of exhaustion to sell at those higher levels. If we break down from here, we will probably go down to the $2.75 level, perhaps the $2.50 level after that. However, I feel much more comfortable shorting after rallies.

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.