WTI Crude Oil and Natural Gas Forecast - 20 July 2018

WTI Crude Oil

The WTI Crude Oil market had a very volatile session on Thursday, reaching towards the $70 level, an area that has seen a lot of sellers jump in. Now that we have formed a relatively neutral candle, I think we will continue to see somewhat bearish action in this area. That being said, there is a massive amount of support underneath near the $66 level and of course the $65 level, which is the uptrend line just waiting to pick things up. It wouldn’t surprise me to see a little bit of a bounce, but this bounce coming should probably be a selling opportunity as well. I would consider shorting this market on short-term charts, selling the first signs of exhaustion that I see you.

Crude oil

Natural Gas

Natural gas markets broke down a bit during the trading session on Thursday, reaching towards the $2.70 level before rallying quite impressively. Because of the strength of the candle for the day, I believe that we will probably continue to go higher, but I'm looking to short this market somewhere near the $2.85 level. If we can’t get there, then it would make sense to see selling pressure at the $2.80 level instead. I believe that the market is still attracted to the $2.60 level, but we are getting towards the lower part of the longer-term consolidation, so it makes sense that we may get some value hunting in this general level. If we were to break down below the $2.60 level, that would be catastrophic for natural gas, but it is not something I expect to see anytime soon. I believe that any bounce from here needs to look for exhaustion to start taking advantage of shorting again.

Natural gas

Christopher Lewis

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.