WTI Crude Oil And Natural Gas Forecast – Friday, Feb. 22

WTI Crude Oil

The WTI Crude Oil market pulled back during Thursday’s trading, as we continue to see a lot of resistance at the $57.50 level. I think that extends to the $58 level and therefore it’s very difficult to break out quite yet. In fact, it’s likely that we may see a short-term pullback in order to build up the necessary momentum to go to the upside. I believe that there is a bit of a “floor” in the market at the $55 level, so therefore I don’t have any interest in shorting this market, although I do recognize that pullbacks are probably necessary. Being Friday, it’ll be interesting to see whether we can break out, but there is still a gap near the $60 level that coincides nicely with the 200 day EMA that I think we will go looking for given enough time.

Crude oil

Natural Gas

Natural gas markets rallied again during the trading session on Thursday, as we got slightly bullish inventory numbers. However, I think at this point it will just give us an opportunity to start selling again, especially near the $3.00 level above. I like the idea of fading rallies as they happen, and therefore I have decided to be very patient and sit on the sidelines waiting for a nice exhaustive candle to take advantage of, perhaps something along the lines of a shooting star on the daily chart. The 50 day EMA coincides with the $3.00 level as well, so that’s exactly where I’m looking for a weakness to take advantage of. I don’t have any interest in shorting this market down here, and I certainly don’t have any interest in trying to buy the bounce.

Natural gas

 

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