The cash price of WTI Crude Oil went into the weekend near the 75.561 USD ratio, this as light holiday trading certainly brought upon minimal volume. The high for Crude Oil last week was near 78.415 which occurred last Monday, the low for the commodity was on Wednesday when a price of 73.810 was briefly challenged. Intriguingly the high last week happened very early and the low was demonstrated as large traders were starting to think about the U.S. Thanksgiving holiday.
However, before escaping for their long holiday weekend on Wednesday, a reversal higher ignited and a high of nearly 77.100 emerged before the day was finished. Trading the remainder of the week was light as volumes largely eroded. What makes the notion of Wednesday’s late surge higher interesting is that speculators likely believed WTI Crude Oil had been oversold early in the day, and wagered a higher equilibrium would be found.
Mid-Term Support Levels in WTI Crude Oil Approached
WTI Crude Oil remains near price levels last seen in July of 2023. Most of the energy sector and their various commodities are also trading near their lower price points. While there has been a downtrend in commodities over the mid-term, technical traders may want to look at the broader commodity market and note that since September a slight upturn has started to develop in the industrial metals. Demand is certainly still in question as recessions shadow major economies, but as risk appetite appears to be showing a potential of growing speculators in WTI Crude Oil may believe the upside lurks.
- As full trading volume returns on Monday and Tuesday of this week, speculators should brace for the possibility of fast price action as larger players position in WTI Crude Oil.
- The lows reached on Wednesday of last week did not penetrate the lows from the week before in Crude Oil, and in fact, when the 73.810 vicinity was touched, a burst of strong buying was clearly demonstrated.
Tell Tale Week Possibly for WTI Crude Oil Coming
The last week of November may prove to be important for WTI Crude Oil. No asset trades in a vacuum, meaning WTI Crude Oil is affected by global risk appetite like all other financial assets. If the broad markets continue to show signs of buying action in equities, the price of WTI Crude Oil may be perceived as being too low. This doesn’t mean the commodity will race to the moon, but that looking for the potential of a slight climb may be a realistic wager.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 73.700 to 81.200 USD.
Last week’s trading produced a rather tight range; neither the high or low in WTI Crude Oil seriously challenged the previous week’s wide value realms. As full volumes become the norm again within the commodity speculators should brace for the potential of stronger move. If support levels near the 75.000 to 74.000 prove durable early this week, this could be a signal additional buying may build in WTI Crude Oil. Traders looking for downside and support to be tested, may be venturing too far if they seek values below the 74.000 realm this week.
Upside value is not guaranteed, but if risk appetite in the broad markets continues to be seen, WTI may find speculative positions aiming for the 76.000 and 77.000 ratios rather quickly. If these prices are challenged and higher values are sustained a test of the 78.000 to 79.000 marks could develop without too much trouble. Risk appetite remains the key in the WTI Crude Oil market. Yes, there is a change risk adverse conditions could re-ignite and push the commodity lower, but optimistic sentiment may help WTI Crude Oil spark buying this week.
