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A deluge of news since late Friday and an already reactive marketplace will make trading early on Monday not only dynamic but a global interest. The price of WTI Crude Oil has sprung back into a nervous higher realm and speculators wagering in the energy sector will find themselves within the midst of sentiment shifts which will continue to be reactive. Large players in WTI Crude Oil were certainly surprised by emerging news from the Middle East on Thursday and Friday which caused velocity upwards, and the potential for more bombshells (literally) exists.
Saudi Supply Disruption Raises the Risk of Fast WTI Moves
WTI Crude Oil is again a centerpiece of attention for global markets. The higher price of the commodity will impact economies due to inflation concerns and perhaps government policies regarding interest rates. Day traders will need to be ready for plenty of volume in the cash and future markets to cause a replica of the fast trading results which transpired late last week.
Risk management will prove essential. The ability of WTI Crude Oil to move quickly will also be impacted by the likelihood of more news from the Middle East. Saudi Arabian supply of Crude Oil is being hampered by a military escalation in their nation and Yemen. A major pipeline as of late Friday was shuttered by Saudi Arabia when it became dangerous to operate.
WTI Closes Above $100 as Traders Assess Middle East Headlines
WTI Crude Oil within the cash market closed above $100.00 on Friday. The price of the commodity on late Thursday and early Friday went over $105.00. Tomorrow’s opening will likely be attended by a crowd of large players who typically would be resting easily if their geographies (like North America) were still within sleeping hours when cash and some futures markets open. Meaning the price of WTI Crude Oil and other energies will be dangerous not to monitor, and this means many large traders are likely to be active early.
Small speculators can wager on WTI Crude Oil based on their own perceptions per the news being reported from media circles, but large players will likely be reacting to information they gather from their own sources situated in the Middle East and elsewhere. However, intriguingly the large players which create market forces in WTI Crude Oil are likely blind to many developments too in the Middle East. This because the sudden dangers involving Saudi Arabia and the Houthis (and other parties) are hard to observe and working within a deep layer of complicated murkiness regarding what is taking place and what is being planned.
Why Saudi Arabia Developments Make WTI Direction Hard to Read
Day traders may want to ask themselves if they believe there will be a sudden flurry of optimistic news from the Middle East. If the answer is no, then their perceptions may lead towards the idea of higher prices emerging in WTI Crude Oil. However, the rapid price changes in the commodity are now within a realm that makes it dangerous to operate for small retail speculators.
The use of leverage while pursuing WTI Crude Oil will cause volatile reactions in trading accounts and these results can be bad just as easily as them being good. Thursday and Friday’s upper realm prices tested ultra-values seen in March and April when nervousness about the Iranian War was large. The developments in Saudi Arabia the past few days is a return to surprises that are hard to predict.
WTI Crude Oil Price Chart – Support & Resistance Areas
WTI’s Fast Rally Carries a Risk of Sharp Reversals
The desire to trade a fast and upwards market like WTI Crude Oil is alluring in many ways. However, day traders should make sure they look at the technical price action of the commodity from this past March and April and understand the speed of price changes and reversals that were seen during that time. WTI Crude Oil could easily create additional upside momentum early on Monday and into Tuesday, yet it could also create shifting values that react violently downwards. Near-term speculating in WTI Crude Oil may attract a sea of betting early this week.
WTI Pulls Back Before the Weekend as Monday Opens With Risk
The simple judgement to look for upwards value in WTI Crude Oil may be a thought many speculators are having. But problematically against those notions stands the reactive price action seen on Friday when the cash market decreased a bit going into the weekend. Reports from the Middle East will be a driver regarding sentiment near-term in WTI Crude Oil. Day traders need to be ready for a swift marketplace.
WTI Crude Oil Short Term Outlook:
Current Resistance: 101.000
Current Support: 99.500
High Target: 108.000
Low Target: 97.900
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