The price of WTI Crude Oil closed the week of trading slightly below its starting point last Monday, and trading in the commodity remains under speculative pressure.
- WTI Crude Oil finished the week of trading slight below its starting point last week.
- If a speculator wasn’t participating they might simply look at the price of the commodity as having performed a very comfortable value line, but that isn’t the story.
- The price of WTI Crude Oil began last week with normal choppy values but fell to a low of nearly 76.680 on early Wednesday.
- Then the price of the commodity started to climb and by Thursday was flirting with a high around 79.420.
The price of WTI Crude Oil remained within the upper levels of its short-term range going into Friday, which then created a high around the 79.520 mark. However, after hitting the apex which retouched marks from the 2nd of May, WTI Crude Oil began to selloff going into the weekend. The strong selling as Friday concluded showed that large players were feeling comfortable with fundamentals which show adequate supply and a lack of hyperbole from the Middle East.
Back to Square One as WTI Crude Oil Opens this Week
Essentially WTI Crude Oil appears set to open Monday’s trading within vicinities it began last week’s trading. From a technical perspective the ability to turn lower as the weekend approached is significant and if the commodity opens tomorrow with a tranquil price range, this might indicate lower realms could still be demonstrated. Last week’s lows touched values last seen on the 11th of March. The 76.000 level appears to be important support for WTI Crude Oil.
If WTI Crude Oil continues to sell and falls below the 77.000 mark, traders will have their eyes on last week’s low. If the 76.600 support level is able to be penetrated lower it will open the door to technical consideration via prices that were seen from December into February. Lower prices may seem like wishful thinking for the public and speculators, but if supply and demand remain consistent with the levels being demonstrated currently a bit more selling to slightly lower depths is not out of the question.
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WTI Crude Oil and Fair Market Value and Global Economic Intrigue
Global economies do seem to be improving slightly via economic data from Europe and China but very slowly, this as they seem to show signs of potentially stumbling out of recessionary pressures. But the U.S economy appears to actually be growing weaker and if this decline continues it will open the door to less demand for WTI Crude Oil.
- Support near the 77.000 level should be watched early this week; if it is penetrated another push towards lows seen last week will likely become the target.
- Having produced a selloff going into last weekend is intriguing, WTI Crude Oil should be watched early this week to see if momentum continues, but if there is a reversal higher on early Monday this may indicate some large players believe the commodity is slightly oversold.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 75.10 to 80.20
The trajectory of WTI Crude Oil has been lower since tracing above the 87.000 price in first and second week of April. The inability last week to seriously challenge the 80.000 value is another sign that technically traders may be comfortable with the current price range. Last week’s push higher from Wednesday into early Friday are a reminder that WTI Crude Oil can move higher and day traders wagering on the commodity need to be careful.
If political saber rattling from the Middle East can remain within calm decimal levels and not scare large traders of WTI Crude Oil, it is likely the commodity will remain within a rather polite price range. The 76.000 to 79.000 levels seem like a potential playing ground in the coming days. If the commodity is able to open with selling following last week’s soft close, there is a reason to suspect some additional selling may demonstrated. The technical range of WTI Crude Oil appears to be rather firm going into this week.
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