On Tuesday of this past week WTI Crude Oil found itself challenging the 58.000 level, on Wednesday the commodity sank to around 57.500, and then reversed higher to 58.920 which stayed below Tuesday’s high and Monday’s opening.
Selling pressure returned on Thursday and not only was the 58.000 mark put under pressure, but the ratio was penetrated violently and WTI Crude Oil touched a low of nearly 56.900 momentarily.
Friday’s price action did show some upside action, but the 58.000 USD level was never really in danger of being pierced. Instead WTI Crude Oil found more selling pressure and the 57.000 level below, once again, became the target technically. The commodity has gone into this weekend around 57.145, which is touching prices seen around the 21st of October.
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Temptation to Say Price is Too Low
Day trading temptations can be dangerous things. The common logic in WTI Crude Oil via a historical perspective might be to say the price of the commodity is too low and that it must rise. However, the value of WTI Crude Oil did traverse lower realms in October of this year. The price the commodity is currently touching values seen on the 21st of the that month, but in the days leading up that date – WTI Crude Oil actually challenged the 55.000 realm via downside pressure during the third week of October briefly.
While higher values were attained in the first week of December and the 60.000 level was touched and proven capable to demonstrate some buying momentum, this did not last long. WTI Crude Oil continues to showcase an ability to remain within the lower elements of its long-term technical price range. Impetus upwards it appears remains hard to produce.
Reasons Why Crude Oil Could Go Higher
News late on Friday that the U.S had seized a Venezuelan oil tanker was heard and had enough time to have caused a reaction, but evidence shows the WTI Crude Oil market seems to have been unaffected by this development.
- The holiday season is about to kick into full gear after this coming week, big traders will exit the markets and this might leave the door open for some speculative wagering in the energy sector.
- However, lower volumes which will develop can make it dangerous for day traders who might have to deal with sudden bursts of velocity.
- This coming week will be a looking glass into behavioral sentiment within WTI Crude Oil before big players disappear.
- And as WTI Crude Oil lingers near important lows, early reactions tomorrow and on Tuesday will be worthwhile to watch.
- Will oil remain near the 57.000 level? Or will a push upwards to 58.000 be seen or will downward pressure stay in charge and produce lower tests?
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 56.200 to 59.400
Supply and demand are stable for Crude Oil. The U.S is producing plenty of energy and other spheres are also supplying a vast amount of oil. Traders with bullish perspectives technically because of historical perspectives are urged to remain cautious. Perhaps the lower levels now being traversed will be considered solid places to look for reversal upwards. Yet, mid-term and long-term charts do show WTI Crude Oil has gone lower.
However, traders with staying power might be tempted to say (and perhaps correctly) that the current lower values being tested at this moment in WTI Crude Oil have not been able to be sustained consistently. Even if WTI Crude Oil climbs from these current price realms around the 57.150 vicinity and towards the 58.000 or higher – that would be considered a solid profit by most speculators. The warning for day traders looking for reversals higher based on the notion that WTI Crude Oil can only go up, is to note that in fact it has gone lower. It might be tempting to look for reversals, but it could also be dangerous short-term.
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