WTI Crude Oil and Natural Gas Forecast - 18 February 2019
WTI Crude Oil
WTI Crude Oil traders bought hand over fist during the trading session on Friday to close at the top of the candle stick, and then break above the $55 level. Ultimately, I think that we are ready to go higher but there is a candlestick from early November that has me a bit concerned. However, if we can break above that candlestick, which I have an ellipse around, then we should go higher and reach towards $60. In general, I think that we are going to break out but we still have a little bit of noise above to perhaps make things a little bit dicey. Nonetheless, it’s only a matter time before we go higher. With this, I think that pullbacks will continue to be bought as we are obviously trying to make a significant break out for the longer-term.
Natural gas markets rallied a bit during the trading session on Friday, but we are still very depressed as far as pricing is concerned. Ultimately, I think that it’s only a matter time before we rally from here, because I think that rally will be based upon going far too low and testing major support. Overall, I think there is the high likelihood of a relief rally, which should give us an opportunity to sell from higher levels and pick up a bit of real estate.
Ultimately, I think that the $2.75 level is resistance, just as the $3.00 level will. I look at levels above, and I’m waiting to see certain amount of exhaustion that I can take advantage of. I have no interest whatsoever on buying natural gas, as it is extraordinarily over abundant and needless to say oversupplied.