WTI Crude Oil And Natural Gas Forecast – Tuesday, April 17

WTI Crude Oil

The WTI Crude Oil market pulled back slightly during the trading session on Monday, losing 1.6% by the time the markets closed for the day. The uptrend line underneath should continue to be supportive, and I think that it’s not until we break down below that level that we can start selling. I think that we have simply ran out of momentum, as we reach the top of the Bollinger Band. I’m looking for supportive candles underneath, and on signs of support or a supportive daily candle, I am more than willing to start buying again. The $64 level should also be supportive, just as the $66 level will be as it was previous resistance. I think ultimately, this market will go looking towards the $70 level above, so look for value to take advantage of. A falling US dollar will exacerbate this move if we do in fact see that.

Natural Gas

Natural gas markets rally during the day on Monday as well but gave back about half of the gains for the session to turn around and form a shooting star. The shooting star is a negative candle, and as we are getting close to the overall range that we have been in for the last several weeks, I like the idea of shorting this market and trying to get back to the $2.65 region. If we broke above the $2.80 level, you will probably go looking towards the $3.00 level, but at this point I’m looking to sell, not buying this market. There is an overabundance of natural gas around the world, most notably in North America, and I think that will continue to cause a major issue with pricing in this market. I sell exhaustion, I have no interest in buying natural gas.