This past Friday WTI Crude Oil finished the week within eyesight of the 70.000 USD mark, but the closing price of nearly 69.875 was close to the previous week’s close of 69.500.
Holiday trading certainly affected the price of WTI Crude Oil last week and this will not change in the coming days. Friday did see more activity before the weekend started, but trading volumes in the energy sector like all other assets are muted. The ability to go into the weekend near the 69.875 price was within WTI Crude Oil’s known range, and it is unlikely there is going to be a new development this week.
Tomorrow’s price action will see volumes which will likely be close to Friday’s trading, but this coming Tuesday transactions will start to fall off again as the markets begin to anticipate Wednesday’s New Year’s Day celebrations when global markets will be shuttered. The price of WTI Crude Oil within sight of the 70.000 level is unlikely to cause much noise. Traders who are participating should be happy with quick hitting targets that are not overly ambitious.
Top Forex Brokers
Known Trading Range and Near-Term Expectations
The trading range of WTI Crude Oil has been well tuned as far as a price band, but picking up potential moves via short-term trends will remain challenging for retail traders this week. The 68.500 to 70.500 ratios continue to look like a potential playing ground. Yes, WTI Crude Oil did see an uptrend develop via technical charts last week, but because of holiday volumes trying to interpret this as legitimate change of sentiment feels foolish.
President-elect Trump still has three weeks and a couple of days before he takes power, but large traders are effectively working as if he has taken control of the White House already. The outlook of WTI Crude Oil players is that U.S energy policy will actively pursue more production. The more friendly energy perspective regarding exploration in the U.S will certainly continue to create some headwinds regarding potential rising prices for WTI Crude Oil. The range that is known in the commodity will likely continue to see traction near-term.
Trading Techniques During Holiday Season
Retail speculators with visions of taking advantage of light trading volumes in WTI Crude Oil need to understand they do not have any influence on the marketplace. Most retail traders are using CFDs and not participating in the cash or futures markets of WTI Crude Oil. Large players will remain away from the market place this week, except to keep an eye of value ratios and make sure they are not doing something unexpected – they are the ones who move prices.
- Retail traders may be able to wager on suspected technical highs and look for reversals lower.
- However, Monday’s trading volumes will be difficult to get a grip on via sentiment.
- And volumes will not become large in WTI Crude Oil until the 6th of January and gradually increase as all trading offices become fully staffed.
- Trading this coming Thursday and Friday could prove to be interesting as some traders potentially make wagers on next week’s increased volumes.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 68.450 to 70.650
Wagering on WTI Crude Oil will remain a rather quiet place this week. Yes, speculators will be able to participate, but patience will be needed and risk taking tactics will have to take into account the potential of sudden moves developing when the occasional large order shakes the markets. Known price ranges are likely going to remain in place and the use of support and resistance levels will be a solid launching ground for bets.
However, traders need to be wary about outliers which could develop momentarily in thinly traded market conditions. WTI Crude Oil may be over priced at 70.100 to 70.400 USD, but traders looking for reversals lower from those junctures need to be careful because there are no guarantees that the price of the commodity would be forced to erode until large volumes reappear.
Ready to trade our Crude Oil weekly forecast? We’ve shortlisted the best Forex Oil trading brokers in the industry for you.