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WTI Crude Oil ended the week of trading near the 73.896 ratio, which was clearly in sight of the high made around 74.300 earlier on Friday. The ability of WTI Crude Oil to finish the holiday week within sight of the 74.000 USD price should interest technical and fundamental traders. A high for WTI Crude Oil occurred via one month technical charts on the day following Christmas when the commodity briefly traded above 76.000, but this high was certainly speculative and happened when trading was extremely thin.
Last week’s trading in WTI Crude Oil was still affected by holiday trading volumes, but the price range of the commodity stayed within a known range. The high produced before going into the weekend should be looked at rather suspiciously by speculators and trading early this week will be insightful regarding sentiment as large players in the energy industry return to their desks following the long holiday break.
WTI Crude Oil is Near a Comfortable Price
A look at a one-month chart shows the current price of WTI Crude Oil is lingering within the higher realms of its price range, but as larger trading volumes come into the energy market this week it is likely price velocity may get tested. The past two weeks of trading were not hit violently by concerns regarding the Red Sea shipping lanes. It appears experienced traders in WTI Crude Oil have remained calm. This consideration leads to the thought that trading remains focused on supply and demand which remains at comfortable levels.
- WTI Crude Oil hit a low of nearly 69.300 USD on Wednesday of last week; this price had last been seen on the 13th of December.
- The ability to climb from last week’s low and go into the weekend near the 73.900 mark will bring a quick test when trading opens on Monday.
Global Economic Conditions and Outlook are a Factor for WTI Crude Oil
Demand for WTI Crude Oil remains high but there is plenty of oil available. While many major economies are still within recessionary waters and concerns about China’s economy persist the price of WTI Crude Oil may continue to remain within a rather polite price range. The impetus for large moves in Crude Oil may only be spurred on by a sudden nervous news development. Until then it appears WTI Crude Oil may continue to produce a test of its current range which will allow technical trading to likely dominate in the coming days.
WTI Crude Oil Weekly Outlook:
The speculative price range for WTI Crude Oil is 69.100 to 75.700 USD.
Trading in WTI Crude Oil will see increased volume in the coming days and this will affect market conditions. Early results on Monday and Tuesday should be watched for the potential of price velocity to be demonstrated. But if the price of WTI Crude Oil remains within its current price range, this could spark technical traders to look for moves lower if the 74.100 to the 75.000 levels are tested higher.
If a climb above 75.000 is sustained early this week, it would be interesting and show that some nervousness exists regarding shipping conditions in the Red Sea. If the price of WTI Crude Oil remains below the 74.000 vicinity this may indicate the commodity may move lower and begin to try and test the 73.000 to 72.000 realms.
Quick-hitting trades are likely to remain a tactic for traders as the price range of WTI Crude Oil remains steady. The 72.000 USD level for the commodity looks like intriguing support, but a move lower to 71.000 would not be a surprise either. A slightly wider price range in Crude Oil could develop this week as trading volumes return to normal following the Christmas and New Year’s holidays; this could make the range of WTI Crude Oil rather interesting in the coming days and opportunistic for technical traders who want to test support and resistance levels.
