WTI Crude Oil And Natural Gas Forecast – Wednesday, Feb. 27

WTI Crude Oil

The WTI Crude Oil market bounced a slight bit during trading on Tuesday, as we continue to see a lot of interest near the $55 level. As you can see on the chart, I have the $55 level offering support, as it was previous resistance. Above there, then we have significant resistance at the $58 level. At this point we continue to grind sideways overall, and I do believe that the $55 level will continue to attract a lot of attention. With all of that in mind, I do expect that we will probably see a bit of a bounce, as we try to build up the necessary momentum to finally break out. However, a daily close below the $54 level would more than likely open up the door to the $52 level next.

Crude oil

Natural Gas

Natural gas markets initially tried to rally on Tuesday but gave back the gains as we lost $0.03 towards the end of the day. That being said, I am waiting for a selling opportunity at higher levels, somewhere between the $2.92 level and the $3.04 level. At the first sign of exhaustion in that area, I’m more than willing to jump into this market and push lower. I have no interest whatsoever in trying to buy this market, and therefore I am simply sitting on the sidelines. That being said, if we can break down below the $2.75 level, we may have the ability to short this market down to about $2.60 for a short move. Overall though, I think it’s much easier to short this market after at rallies as it gives us real estate to work with. Natural gas continues to be oversupplied for the foreseeable future.

Natural gas

 

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