WTI Crude Oil and Natural Gas Forecast - 26 July 2018

WTI Crude Oil

The WTI Crude Oil market initially dipped a bit during the day on Wednesday but then rallied towards the $70 level. However, we have seen a bit of supply just above here, so it would not surprise me at all to see this market struggle again and perhaps pull back. In fact, it’s not until we break above the $72 level that I think the market could go looking towards the $75 level again. There is an uptrend line underneath is well though, so I think the market is very likely to go back and forth as there is a significant amount of support and resistance around this region. If we were to break down below the uptrend line, then we could drop towards the $64 level, followed by the $60 level.

Natural Gas

Natural gas markets rallied a bit during the trading session, testing the $2.78 level for resistance. We did pull back a little bit from there, and it looks as if we continue to go back and forth, perhaps consolidating above the $2.70 level. On a break down below the $2.70, it’s likely that the market could continue to drift towards the $2.60 level, which is the bottom of the overall consolidation. I think at this point though, if we do rally from here, it’s an opportunity to start selling again on signs of exhaustion. I believe natural gas will continue the overall negativity, and I see plenty of resistance at the $2.80 level, the $2.85 level, and the $2.90 level. In other words, I see far too many problems above to start buying, and I believe that rallies are simply to be sold at the first signs of trouble.