WTI Crude Oil And Natural Gas Forecast – Wednesday, August 8

WTI Crude Oil

The WTI Crude Oil market tried to rally again during the day on Tuesday, but just like the Monday session we ended up finding sellers close to the $70 level again and rolled over. By forming a shooting star, this tells me that the market is ready to continue to stay within the consolidation area that is bordered by $70 on the top and the $67 level on the bottom. Ultimately, I think this market will continue to be very noisy, as the geopolitical issues continue to push oil markets around. If we can break above the $71 level, then we are likely to reach towards the $75 handle, but there is so much noise between $70 and $71 that I think it’s going to take a newsworthy event to cause that to happen. I think at this point, we are probably more likely than anything else to consolidate in this three dollar range.

Natural Gas

Natural gas markets continue to show a lot of bullish pressure, as we are starting to clear the $2.90 level. The market looks as if it is trying to reach towards the $3.00 level above, which is the beginning of major resistance that extends to the $3.10 handle. At this point, I think we are in fact going to test the $3.00 level, but we may need a short-term pullback to build up the necessary momentum. There is nothing on this chart that tells me we are ready to break out of the overall consolidation area, so therefore I think that we are looking at reaching towards the upper part, and then start rolling over to fall again.