WTI Crude Oil and Natural Gas Forecast
WTI Crude Oil
The WTI Crude Oil market shot higher initially to kick off the day on Tuesday, as we attempt to reach towards the $55 level, which of course is psychologically important. We have recently bounced though, so the question now is whether or not we are trying to build a base or are we going to break down? At this point, I suspect we are trying to build a bit of a base because we have sold off so significantly.
Looking at the chart, I think that if we can break above the $55 level on a daily close, then we can go much higher. Alternately, if we break down a bit from here I suspect that we will find quite a bit of buying pressure starting at about $51.50 or so. I believe at this point the $50 level is your “floor.” If we break down below there, this market unwinds quite drastically.
Natural gas markets initially fell a bit during the trading session on Tuesday but then shot higher to reach towards the $2.40 level. Ultimately, I think we still have some room to go to the upside but I’m not willing to buy this market. I think waiting for some type bit of exhaustive candle in a higher level is probably the best way to go. The $2.50 level above is a previous support and should now be massive resistance. If that’s going to be the case, I think that it’s only a matter of time before we consider selling and I welcome this rally as an opportunity to sell from higher levels. I believe that there is resistance at the $2.67 level as well, as it features the 50 day EMA. I have no interest in trying to buy this market in the meantime though.