WTI Crude Oil And Natural Gas Forecast – Monday, Feb. 25

WTI Crude Oil

The WTI Crude Oil market found significant resistance above at the $57.50 level, as we continue to see massive supply at this area that had kicked off the last leg lower. At this point, it’s likely that we get a short-term pullback but I also see a significant amount of support below at the $55 level. Ultimately, I think that buying pullbacks make sense as it gives you an opportunity to pick up value. The crude oil market should continue to offer opportunities for traders that are looking at shorter-term charts, as it looks like we are building up the pressure for a move to the upside. The 50 day EMA underneath is starting to turn up to a positive angle, but I’d be surprised if we get all the way back down to that level.

Natural Gas

Natural gas markets initially fell during the trading session on Friday but then turned around to show signs of strength again. Ultimately, this market looks very likely to continue to go higher, but only for the short term as there is a massive gap above that could cause significant pressure. We are at extraordinarily low levels, so I think at this point it makes sense that we could get a bit of a relief rally, but that relief rally should be an opportunity to sell as it gives us more real estate to take advantage of on a move lower. The 200 day EMA above at the $3.15 level will, of course, offer selling pressure as well. We might get a short-term spike due to cold temperatures in the United States, but that will be temporary at best as we roll into the spring season.

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