WTI Crude Oil And Natural Gas Forecast – Monday, March 12

WTI Crude Oil

The WTI Crude Oil market exploded to the upside, gaining 3% on Friday as the jobs number came out much stronger than anticipated. Ultimately, there is a significant amount of resistance above though, as the shooting star has shown signs of exhaustion a week ago. I think that the market should roll over and go back towards the $60 handle, but if we managed to break above the $63 level, we could see this market go towards the $64 handle, and perhaps even the $65 handle. Otherwise, I think that the sellers coming in and push this market towards the $58 level which I see as the bottom right now. We have recently broken below a major trend line, and I think we are winding up for a lower move, but time will tell.

Natural Gas

Natural gas markets were negative during the trading session on Friday, reaching down towards the $2.73 level. This is an area that could be supportive though, as we have recently seen a bit of a breakout. I think that if we bounce from here, we will probably try to continue to grind towards the $3.00 level, an area where I would love to start selling. I think short-term traders will continue to pick up natural gas as it is cheap, but it’s also in a very negative time of year as we start to emerge from cold temperatures in the United States. Any bullish pressure that we see now will either be value hunting at best, or more than likely going to be a situation where it is simply a “dead cat bounce.” At the first signs of exhaustion not a daily chart, I’m willing to start selling again.