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WTI Crude Oil Weekly Forecast - Steady Range Trading and Polite Price Action

WTI Crude achieved its weekly high on Friday around 74.600, only to decline and hover above the 73.350 USD mark as the weekend approached.

  • Speculators who like the capability to test support and resistance levels within commodities are likely feeling almost relaxed regarding WTI Crude Oil.
  • The past week once again delivered a rather polite price range and a look at a one month chart tells the same story.
  • Yes, WTI Crude Oil has certainly produced quick hitting results and the use of leverage makes the commodity quite volatile for day traders, but the price realm between 70.500 and 75.300 has been rather firm the past 30 days – with the occasional outlier.

Crude Oil Weekly Forecast - 21/01: Stable Range & Action (Graph)

WTI Crude Oil went into the weekend near the 73.350 mark and while it did hit a high for the week on Friday around the 74.600 USD level, the fact that the commodity finished the week showing a selloff tells us a bit about current behavioral sentiment in the energy sector. Even as news developments from the Middle East and Asia produce rather loud headlines, WTI Crude Oil has not been hit with a massive wave of speculative buying.

Known Price Range and Speculative Wagers

Not only has there been a lack of buying as traders monitor the Arabian and Red Sea shipping traffic due to the actions of the Houthis, but WTI Crude Oil has not been able to jump up significantly in price even as a massive cold wave has hits North America. WTI Crude Oil prices going into the weekend only a stone’s throw away from the 73.000 USD level indicates buyers understand there is plenty of supply of the commodity.

  • Friday’s high while a solid short-term gain for speculative bulls did not challenge the highs made on the previous Friday, the 12th of December, when WTI Crude Oil traded briefly above the 75.000 mark.
  • Support is also proving rather durable for WTI Crude Oil and price action seems to be focused technically on 73.000 USD.
  • This price level may continue to be a focal point for day traders in WTI Crude Oil.

Risk Sentiment vs. Strong Supply in WTI Crude Oil

While international media continues to produce updates regarding the crisis in the Middle East, it appears speculators and large players within WTI Crude Oil continue to feel rather comfortable with the current price ratios. This will allow day traders to continue pursuing their bets on price direction in a rather relaxed manner, but certainly speculators need to keep an eye on developments regarding the Red Sea saga. However, large players in WTI Crude Oil are experienced with political intrigue and this has likely helped keep the price of the commodity in a rather known range the past week, and month.

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    WTI Crude Oil Weekly Outlook:

    Speculative price range for WTI Crude Oil is 71.550 to 75.20 USD.  

    The opening for WTI Crude Oil should be watched early on Monday. If the price of the commodity remains rather lackluster and does not produce a sudden jump upwards and a re-challenge of values seen on Friday, this may indicate bearish sentiment continues to be felt in the marketplace.  If Red Sea shipping news remains calm before the Crude Oil markets open, this could allow for a test below the 73.000 realm once again. Support has looked durable near the 72.000 level since Wednesday, but a slight move below this mark would not be a major surprise.

    Speculators should continue to look for quick hitting trades in WTI Crude Oil this week. It has been freezing in many locations in North America and the weather has failed to ignite a buying surge in Natural Gas which is correlated to WTI Crude Oil and can be used as a barometer for current price levels. Conservative leverage is recommended in WTI Crude Oil. There is always a chance that a news flash could cause a sudden change in behavioral sentiment. But for the moment, WTI Crude Oil continues to look like its price range is technically driven and support and resistance levels are durable.

    Ready to trade the WTI/USD exchange rate? Here’s a list of some of the best Oil trading platforms to check out. 

    Robert Petrucci
    About Robert Petrucci
    Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.

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