WTI Crude Oil And Natural Gas Forecast - Friday, Jan. 25

WTI Crude Oil

The WTI Crude Oil market has rallied a bit during the trading session on Thursday, as we continue to bounce between the 20 and the 50 day EMA indicators. By going sideways, we have shown resiliency that is a bit surprising considering that the EIA reported that there were was an increase of 8 million barrels to US inventory. That is a very negative sign, but at this point, the market refuses to drop. I think what we are waiting on is whether we can break above the $55 level. If and when we do, that releases the market to go much higher, perhaps adding to the $57.50 level, and then the $60 level after that. In fact, I believe that we are in the process of trying to form an “inverse head and shoulders.”

Crude oil


Natural Gas

Natural gas markets rallied a bit during the trading session on Thursday, breaking above the $3.00 level, showing signs of resiliency again. That being said, I believe the 20 day EMA above, pictured in green on the chart, will cause a bit of resistance. Beyond that, the 50 day EMA is above there I think it should be a selling opportunity as well. Natural gas is oversupplied, and I have no interest in trying to buy this commodity as it is difficult to imagine prices rising for any significant amount of time. I look for rallies that show signs of exhaustion that we can sell, as I believe that the ceiling now is that the $3.50 level above. I do recognize that the $2.75 level underneath is massive support, so a break down below there would really get the downside moving. I believe that fading short-term rallies for small trades will be the best way to play this market.

Natural gas


Disclaimer: DailyForex will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.