WTI Crude Oil and Natural Gas Forecast - 7 June 2019

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WTI Crude Oil

The WTI Crude Oil market rallied a bit during the trading session on Thursday, showing signs of life at the 61.8% Fibonacci retracement level. That being the case, we have broken above the $52.50 level, and as a result it’s possible that we could even bounce to the $55 level. However, with it being the jobs number Friday, just about anything is possible at this point. The $50 level underneath should offer support though, so short-term pullbacks might be buying opportunities. A breakdown below that level would probably unwind this market rather drastically. In general, I think we are oversold so perhaps we are trying to find a bit of a base now. A strong jobs number could turn this thing around as well, as perhaps it could show that there will be more demand.

Crude oil

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Natural Gas

Natural gas markets fell a bit during the trading session on Thursday, as we have now dropped below the $2.35 level. There is a lot of resistance above, and quite frankly we are starting to get a bit overextended to the downside. If we bounce from here, and I think it is likely that we do sooner or later, I anticipate seeing the $2.50 level as massive resistance. Signs of exhaustion closer to that level will probably be an opportunity to take advantage of a major downtrend line. At this point, I suspect that the $2.25 level underneath will probably be an initial target, but we may drop as low as $2.00 after that. Natural gas will continue to see a lot of negativity due to the fact that there is a serious lack of demand for heating in the northern hemisphere.

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.