As August trading gets ready to close out and the month of September looms, WTI Crude Oil has begun to show a steady range which may tempt speculators to test what could actually be considered a consolidated range. Since the 7th of August and up until now WTI has traded mainly within a value band of 41.50 and 43.40 USD. After watching Crude Oil go belly up earlier this year and suffer from the chaos of volatile pricing due to coronavirus fallout, speculators can seemingly rest assured the worst is over in the energy markets and an opportunity exist to place trades which will not drive them insane.
Global risk appetite has continued to improve and even though economists suggest the international economy may take one to two years to recover from the pandemic, it appears purchases of WTI Crude Oil have improved and its outlook for the time being is positive. This does not mean the price of the commodity is going to recover to pre-pandemic levels yet, but the current price of WTI is trading near important early March values. If the commodity is able to muster enough support in the coming weeks, there is a chance WTI Crude Oil could test higher levels seen in late February.
There will be difficult trading days ahead for WTI Crude Oil. Economic outlooks remain troubling, but the stability and gains demonstrated in global equity markets has certainly impacted many commodities in a positive manner. The stable pricing now is a welcome relief compared to the wave of panic which struck WTI Crude Oil pricing in April.
The recovery of positive sentiment within the commodity has created an environment in which support of 41.50 USD has begun to look fairly solid. As the month of August closes the commodity is actually testing high water marks via its monthly chart. It should also be said, OPEC has announced its production mandates are largely being adhered. While geo-political concerns are always dynamic, it appears that for the moment Saudi Arabia, Russia and other major producers are working together behind the scenes to assure cohesive pricing.
West Texas Intermediate Crude Oil is a product of the United States, and its pricing support has found a comfortable mode the past two months. The question speculators will be challenged by is if WTI Crude Oil has now landed within a price range that traders can expect values to test support and resistance regularly without volatile spikes? Resistance near the 44.00 USD per barrel level for the commodity should be watched closely. If this resistance level is broken higher it could actually set off a speculative atmosphere in which the juncture of 45.00 USD becomes targeted.
While it may seem foolhardy to suggest support levels actually look strong for WTI Crude Oil, taking into consideration what happened earlier this year. It would be unwise not to acknowledge the price of the commodity has attained a stable consistency. The question is how much do you believe in the support levels of 41.50 to 42.00 USD for WTI Crude Oil?
If a trader has the patience to let WTI reverse slightly lower and attempt buying positions between 41.75 and 42.50 USD, this could prove a worthwhile trade that seeks higher values. If a trader believes a clear path exists to test higher marks in September already, they may be willing to attempt a quick buying position. As always when trading CFD commodities solid risk management should be practiced.
WTI Crude Oil Outlook for September:
Speculative price range for WTI Crude Oil is 39.50 to 45.50 USD.
Support at 41.50 USD may prove strong and an opportunity to seek reversals upwards, but if broken lower the commodity could test the 40.40 to 39.50 USD levels.
Resistance at around 44.00 USD may prove important, but if broken higher could mean 45.50 USD will be tested.
