WTI Crude Oil on Tuesday, Wednesday and Thursday did try to sustain prices above the 60.000 USD mark. However, plenty of the times during last week WTI Crude Oil was also trading within a lower realm that tested values below 59.000 USD.
Yes, the commodity finished around 61.290 before going into the weekend, this after touching lows near 59.600 on Friday. WTI Crude Oil essentially spent the better part of Friday having buying momentum build and sustain its highest prices for the week. The production and supply of WTI Crude Oil didn’t change the last ten hours of trading on the 23rd of January.
What may have taken place was that nervous buying found a lynchpin because of a rather risk adverse play by large traders before going into the weekend, this as the Iranian situation remains a talking point and potential source of conflict. Proving that suspicion is not particularly easy and it could be disputed by others, but it seems more than coincidental that the price of WTI Crude Oil suddenly jumped with velocity on Friday after being rather tranquil most of the week.
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Sustained Price Above 61.000 Has to be Proven
Having started trading near 59.500 last Monday and finishing stronger for the week will be put to the test immediately on Monday morning. The international scenarios remain loud regarding possibilities with Iran, but if calm prevails this weekend, WTI Crude Oil will be a barometer of risk management per its ordering on the cash and futures markets when large traders return tomorrow.
The 61.000 USD level will prove a good testing ground. If WTI Crude Oil falters below the 61.000 mark this will be a signal that commercial buyers and perhaps hedge funds do not see a reason to pursue higher values. Until there is genuine noise of intervention in Iran by the U.S or other powers the price of WTI Crude Oil may find that it looks highly priced tomorrow. And it must be noted that WTI Crude Oil is still within the lower boundaries of its historical price range.
Day Trading and Catching a Trend in WTI Crude Oil
The price of WTI Crude Oil remains largely a mirror of behavioral sentiment. Even if there is a military conflict in Iran the price of oil in the international markets will likely remain rather calm, that is if other producers like Saudi Arabia remain unaffected by military actions.
- Day traders need to understand WTI Crude Oil could prove volatile on any saber rattling that actually materializes in the form of military action.
- However, the value of WTI Crude Oil has been within lower prices for a while and last week’s test of 59.000 USD would not be surprising to see once again if calms prevails.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 58.700 to 64.100
WTI Crude Oil which has been a rather stable marketplace for traders the past few months without massive volatility could face an assortment of tests via values as news develops from the Middle East this coming week. There is no way to know exactly what is going to happen regarding Iran in the coming days, except to monitor global developments and prepare for all trading outcomes via solid risk management.
If there is military action taken against Iran it would certainly send an initial shock wave through the WTI Crude Oil marketplace. If the situation remains loud but no intervention is seen then the price of WTI Crude Oil may find that is has lower ground to traverse again. That may sound rather simple, but traders should also understand that reversals were clearly part of the commodity’s landscape as seen last week and they must be prepared for choppy prices as news developments influence sentiment.
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