WTI Crude Oil and Natural Gas Forecast — July 13th 2016

In this video, the Trader Guy looks at commodities Crude Oil and Natural Gas for the July 13th session.

WTI Crude Oil — We did rally and broke above the $46 level, which I have marked as the bottom of the descending triangle pattern. I still though, honestly could make an argument for a bit of a descending channel. So, I see still have technical reasons to think that the breakdown below the uptrend line is still intact. This could be a little bit of a short covering ahead of the Crude Oil inventories for the day. So, really at this point I am waiting to see an exhaustive candle that I can start selling. I still think we go down to $43 at this point. It is not until we break above the $50, the psychologically significant number, that I would be comfortable buying.

Natural Gas — We bounced a little bit off the $2.70 level, not a huge surprise and not enough to get me excited that I think we are probably just going to grind sideways for a little bit. The $3 level has a lot of psychological significance. But longer term, I believe that this will end up being a negative market. Yet again, I think we are a little bit oversold. Sooner or later the supply comes back into the market and we go lower. There is also concern about demand though, after all you have to wonder what kind of industrial demand there will be. It is a little warmer in the northeastern part of the United States. So, that is part of what is driving the rally as well. But given enough time, I do think that the supply is overwhelming the demand yet again.

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Post tags: Natural Gas, technical analysis, WTI Crude oil

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