WTI Crude Oil and Natural Gas Forecast - 4 February 2019
WTI Crude Oil
The WTI Crude Oil market pulled back slightly during the trading session on Friday, but found enough support at the 50 day EMA, which of course is a major technical indicator. The market more importantly broke above the $55 level and made another high again during the day, showing just how much underlying demand that there could be in the market. I think at this point we are looking at a scenario where market participants are simply trying the best they can to break above the resistance, and kickoff a major inverse head and shoulders. That could send this market up roughly $12.50 in a relative short amount of time. I do expect the occasional pullback but those should be thought of as value that you can take advantage of. With that being the case, I do not think you should be looking for short opportunities right now.
The natural gas markets fell during the trading session on Friday, slicing towards the $2.75 level. That being the case, the market looks as if it is trying to continue the beriberi attitude that we have seen as of late, but I think it is more than likely going to see a bit of support and perhaps a bounce. Any bounced at this point should be sold at the first signs of exhaustion though, because this is a horrifically negative market. There has been more than enough supply of natural gas for the most part for ages, and I don’t think that changes anytime soon. The $3.00 level causes a lot of interest for sellers, just as the $3.25 level will. An exhaustive looking candle is an invitation to start shorting again.