WTI Crude Oil And Natural Gas Forecast - Monday, Oct. 22

WTI Crude Oil

The WTI Crude Oil market has rallied significantly during the trading session on Friday, testing the $70 level as the 61.8% Fibonacci retracement level has offered enough support. If we can break above the $70 level, then I think the market could probably continue to try to reach towards the $72.50 level after that. It’s a very difficult candle to overcome, but the 61.8% Fibonacci retracement level is called the “golden ratio” for a reason. There’s a lot of noise out there, but I think if we can break above the $70 level it would add much more confidence to the buying opportunity. Otherwise, if we break down below the 61.8% Fibonacci retracement level, then we could unwind the entire move. I think that the tensions between the United States and Saudi Arabia as well as the Iranian sanctions will continue to put upward pressure over the longer-term.

Crude oil

Natural Gas

Natural gas markets were very noisy during the day on Friday, reaching down to the $3.15 level before bouncing again. We ended up forming a bit of a hammer, but we are obviously in massive consolidation right now. The weekly chart is a bit scary looking though, because we had formed a shooting star followed by a relatively neutral candle, so it’s likely that we will continue to be very erratic. I like buying dips though, because it is the typically bullish season for the market, so I think that the dips will continue to attract the seasonality traders. I think there is a bit of a “floor” at the $3.00 level underneath. I would be surprised if we break down below there anytime soon. The $3.10 level is massive support as well. I like buying dips, but I’m also quick to get out.

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.