As if on cue there was another drama filled night and early morning for WTI Crude Oil traders as they had to deal with reports of fresh military actions in the Middle East. The lulls and sudden escalations of developments between Iran and the U.S should surprise no one at this juncture. The ability to create new doses of impetus in the WTI Crude Oil market for traders is a definite fact as values create bursts which if left unmanaged via risk management can be speculatively fatal. However, dealing with the evolving circumstances between the U.S and Iran can be dealt with effectively by staying realistic.
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WTI Oil Volatility Rises as Global Traders React to Middle East News
Current conditions depend on which side of the globe you are sleeping on. That sentence is written to point out that the developing news in the Middle East and the effect on the price of WTI Crude Oil is left to the folks awake when military escalations occur and its impact are being decided upon in the marketplace.
Traders in North America are largely asleep right now and when they wake in the morning they will then have to judge the price of WTI Crude Oil and decide if too much fear has been traded into the value of the commodity, or if the market isn’t taking the threats of the Middle East situation seriously enough. The price of WTI Crude Oil remains in its higher realm, but below the extreme highs seen March through May. WTI Crude Oil trades around the clock, its traders only react when they are available.
WTI Tests $95 Resistance as Geopolitical Risks Persist
WTI Crude Oil is within sight of the $95.000 realm, but lurking slightly below at this juncture. The commodity has touched the $95.000 vicinity a couple of times in the past day and has reversed lower. Speculators should brace for the possibility that WTI Crude Oil will break above this level short and near-term. Sustained higher prices above $92.750 show that support levels are incrementally creeping upwards, this as it appears that the situation between Iran and the U.S is demonstrating the potential for greater tension.
Late last night Iran attacked bases and shipping vessels, this supposedly was responded to by the U.S military. But at this time it appears the Middle East conflict is approaching a time when responses to actions from one side by the other could ignite at any moment into sustained firing by both sides. That doesn’t mean it will happen, but the price of WTI Crude Oil is positioned to price in an additional escalation it appears.
Can WTI Hold Above $92.75 if Tensions Ease?
If the price of WTI Crude Oil breaks above the $95.000 mark and becomes sustained, then sentiment may start to think about higher targets and values seen earlier during the Iranian war when fears ran at their highest levels. Having said that, calmer heads within the mindsets of large players are also likely to be seen as they look for quiet.
If conditions do not boil over, this will create the definite possibility for the price of WTI Crude Oil to start declining again. However, the question if and when a reversal lower does develop, is where support levels will prove durable and a cautionary ratio will be created as folks wait for the next dose of sudden news from the Middle East? Day traders need to remain alert, technical ratios are important, but shifting sentiment is vital to try and understand.
WTI Crude Oil Price Chart
Oil’s Rapid Rally Shows How Quickly Geopolitical Sentiment Can Shift
The incremental price action of WTI Crude Oil since the 26th of August when the $81.000 level was seeing values below seems like a distant memory. Sentiment has swiftly changed from cautiously optimistic to negative outlooks once again. But let’s remember things can change quickly in the Middle East. The potential of an end-game lurks but that depends on your perspective of the war and the outcome that will take hold. Promises from Iran and the U.S have to be weighed against existing circumstances and what potentially will happen near-term.
WTI Oil Outlook: High Volatility Keeps Short-Term Risks Elevated
Pursuit of WTI Crude Oil for all traders at this juncture while an attempt to profit is certainly a wagering landscape. Sudden changes in military escalation are now being looked at carefully by experienced players as they try to judge their near-term perspectives with mid-term outlooks. The problem for WTI Crude Oil and reason for its developing higher prices is because outlook has grown less clear. Day traders need to remain vigilant.
WTI Crude Oil Short Term Outlook:
Current Resistance: 94.850
Current Support: 94.300
High Target: 96.700
Low Target: 92.800
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