WTI Crude Oil went to a low of nearly 80.880 last Wednesday, but then buyers reemerged and the known price realms of the commodity remained within its higher range as the week concluded.
- Following the long holiday weekend in the U.S, speculators returned to the WTI Crude Oil market and trading incrementally produced lower prices starting last Monday.
- Entering last week near the 83.000 ratio, the downwards slope of WTI Crude Oil continued into Wednesday when a low of nearly 80.880 was tested.
- However, after the lower depth was hit the commodity began to incrementally move higher.
- And although a slight reversal lower was seen on Wednesday again, WTI Crude Oil proved that support levels near the 81.000 mark were strong.
The commodity touched a high around the 83.770 level on Friday as speculators brought WTI back into the known higher realms of its mid-term price charts. Crude Oil entered this weekend near the 82.260 level and this did show a rather strong amount of selling. Tomorrow opening in WTI Crude Oil will prove intriguing to see if the 82.000 mark can prove durable as support.
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WTI Crude Oil Testing its Known Range
Day traders who want to wager on the direction of WTI Crude Oil may want to watch price action as the Americans return to the market on Monday. However it appears for the moment via technical glances the commodity is tucked away into a known price range that may allow for tests of support and resistance levels rather comfortably. One concern for traders may be questions about demand as the U.S economy continues to show some signs of weakness. This thought may cause some headwinds for WTI Crude Oil in the near-term, but fundamentals often do not translate into direct price direction in the commodity.
A look at a one month chart of Crude Oil highlights the higher elements of price remain intact. Also interesting is the ability of 81.000 as a support level since about the 18th of June. Yes, there have been outliers lower, but when the 81.000 realm has been tested the past four weeks WTI Crude Oil has produced upwards momentum and this might be a wagering device for retail traders who are cautious.
Last Week’s Charge Higher Ran out of Power in WTI Crude Oil
The inability of WTI Crude Oil to sustain its higher prices before going into the weekend may raise eyebrows among its doubters, and they may compare last week’s highs to the results of the previous week. The lack of a real challenge to the 84.000 level may prove attractive for speculators who believe WTI Crude Oil may still be in overbought territory and they may believe selling positions which seek quickly hitting moves lower are attractive.
- However, the opening on Monday and trading into Tuesday will certain affect behavioral sentiment.
- If the 82.000 realm proves vulnerable early this week and trading is sustained beneath, this may entice some speculators to aim for lower targets.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 80.500 to 84.100
The ability of WTI Crude Oil to remain within its rather bullish one month trend must be watched this week by day traders. If the commodity produces early buying power this would indicate notions about a stronger selloff may prove to be only wishful thinking. If the price of WTI Crude Oil suddenly tops 83.000 early this week and shows the ability to remain above this value, it will indicate speculative buyers remain a force.
The U.S will not publish major economic data this week which should have a big impact on the WTI Crude Oil price. Technical traders may find they have an opportunity to test the known range and attempt quick hitting trades that take advantage of trends that are influenced by technical considerations.
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