Day traders who are tempted to wager on WTI Crude Oil tomorrow and the coming days should certainly be aware of the ongoing Iranian war which is now entering its third week. The price of WTI Crude Oil finished near the 99.300 vicinity on Friday, this as big players likely leaned into long (buying) positions based on nervousness regarding what could happen this weekend. The Iranian war doesn’t show signs of suddenly ending.
Day traders with a sense of geography have been likely hearing a lot about the Hormuz Strait and the island of Kharg in the past handful of days. Massive amounts of Crude Oil are shipped from ports that need to venture through the Hormuz Strait and this has become a dangerous venture. Also late on Friday the U.S reported it had bombed Iranian military hardware stationed on the island of Kharg. Kharg is the island Iran refines most of its Crude Oil. None of this will make Monday’s opening in WTI Crude Oil easy.
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Pursuit of Dangerous Trading
Speculators tempted to trade early this week will have to deal with whatever occurs on early Monday per the opening in WTI Crude Oil regarding price volatility. Last week’s opening powered the commodity above the 116.000 USD mark per the futures markets. Tomorrow’s start of trading in WTI Crude Oil will prove to be a gala event in which all traders watch the results, even if they are not active participants in the energy sector. The threat of higher prices in WTI Crude Oil that become sustained has global economic implications.
Last week’s opening was volatile and fast, tomorrow’s beginning of WTI Crude Oil trading is likely to be powerful too. Technical traders need to understand that behavioral sentiment is now driving the price of WTI Crude Oil. While a strong reversal lower took place after last Monday’s fear eroded, and value below the 85.000 was seen by late in the day, violent price action persisted. Tuesday’s lows in the future market fell below the 80.000 momentarily. On Wednesday the 85.000 USD mark was a barometer, but then the commodity started to incrementally climb again.
Price Swings and Risk Management
Traders who insist on pursuing WTI Crude Oil in the coming week need to understand violent fluctuations could combust at any time.
It isn’t enough to use solid risk management, but a solid reason needs to be found for participating in WTI Crude Oil when it offers wild price action.
Pursuit of higher prices may feel correct considering what happened on last Monday’s opening.
However, deciding where behavioral sentiment will decide the price of WTI Crude Oil has gone too high could turn into a game of roulette depending on developments from the Middle East.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 93.000 to 130.000
Making the decision to trade WTI Crude Oil this coming week should be done carefully. Day traders who like gambling might enjoy themselves, but tactical traders should watch the opening of the commodity early on Monday. From now until the start of trading will also likely include new developments from the Iranian war and it should be understood that sentiment can shift like the wind. While it may seem strange to consider WTI Crude Oil at sustained prices above last week’s early highs, it is also not farfetched.
Fast conditions will be seen, that is for certain and speculators will need to embrace the dynamic price movement and work with focus, this while understanding WTI Crude Oil could deliver plenty of surprises. Conservative traders may want to watch the price of oil on Monday and allow the big traders from the Americas to begin moving in the marketplace. Having said that, it is also likely that the large players in WTI Crude Oil will be active early and set their schedules to the opening of futures.
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