WTI Crude Oil went into this weekend with plenty of angst surrounding the commodity and trumpets blaring noise of coming potential price spikes. However, the fact is that WTI Crude Oil went into this weekend below the previous week’s close.
Friday’s value finished near the 98.100 level, while the week before WTI Crude Oil ended above 99.000 USD. This fun fact is not going to soothe the minds of traders who remain nervous, both large and small.
The Iranian war is now entering its fourth week with few signs of a deescalation. WTI Crude Oil will continue to exhibit volatility, but if you only pay attention to a limited amount of talking heads in the media you may have more anxiety than you should. While some ‘analysts’ are warning about 120.000, 140.000 and potentially 200.000 USD values for WTI Crude Oil per barrel, the reality remains thus far that the commodity is managing to stay below 100.000. A fair question is ‘for how long’?
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100.00 USD Barometer for WTI Crude Oil
Day traders who have survived the past three weeks of volatility in WTI Crude Oil have more adventures to look forward to. The openings on the past two Mondays have been combustible. Speculators tempted to believe a degree of calm is going to prevail when the energy markets open tomorrow may be betting on the wrong horse. Whatever turns out to be fact, one thing is certain, risk management is essential.
The 100.000 USD mark has not seen sustained price action above in WTI Crude Oil, yet. But all it might take is one violent military action to cascade into many to make the higher prices come true. However, for all the saber rattling via President Trump, the Iranians, the Israelis and others, somehow many important production facilities continue to work. Yes, on late Saturday President Trump threatened Iran with severe consequences if they do not allow the Strait of Hormuz to operate, so there is this potential threat to consider.
Wagering on WTI Crude Oil Now
These are not normal trading circumstances. Day traders brave enough to pursue wagering in WTI Crude Oil need to use solid risk taking tactics and understand even large players with tens of years of experience are likely finding results difficult. Yet, another speculative perspective exist and could be used. WTI Crude Oil actually remained within a range of about a 10.00 USD differential most of last week, and it can be interpreted as being less too. Can WTI Crude Oil remain between 94.000 and 99.000 USD most of the time in the coming days? Risk sentiment continues to spark volatility – both upwards and downwards. Shifting price moving will remain strong.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 93.000 to 115.00
One thing is almost certain in the WTI Crude Oil market, downside momentum is not going to suddenly burst lower like a train. In other words, there are likely too many risks within the energy markets for wildly over exuberant optimistic selling. The Iranian war is not going to end this week suddenly – at a minimum it shows no signs of relenting. Which means that if WTI Crude Oil touches perceived support levels there may be a chance that upside reversals remain worthwhile to consider. There is a greater risk of upside swings compared to violent selling being demonstrated – at least in my opinion.
The big trading question though is, where is legitimate support? Thus, cautious traders may want to pursue long positions when selling has been seen, and look for higher ground, but not getting too ambitious with momentum upwards is important too. Everything can change quickly regarding current sentiment because of the complexity of the Middle East conflict. Day traders who have a good grasp on geopolitics still may find it hard to produce solid wagering results in WTI Crude Oil this coming week.
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