WTI Crude Oil and Natural Gas Forecast November 22, 2016

DailyForex

The WTI Crude Oil market gapped higher at the open on Monday, and then slammed into the previous uptrend line. However, the fact that we closed towards the top of the candle is a very strong sign, so I think it’s going to be difficult to continue to go higher. I also recognize that the $50 level above will be massively resistive. If I can find some type of exhaustive candle in this area, it would make a lot of sense that the market would pull back and reach towards the gap that previously formed. Given enough time, I believe that the sellers returned because quite frankly the oversupply continues to weigh upon the market. When we give the market a push to the downside, I suspect that we will not only fill the gap, but probably reach towards the $43 level. Although the market looks very likely to see buyers in the short-term, I just can’t bring myself to start buying a market that has so many things working against the longer term.