- Just because WTI Crude Oil slipped below the 63.000 USD ratio on Thursday and finished Friday’s trading near 61.500 doesn’t mean a crowd of large energy players are about to emerge with bullish tendencies.
- WTI Crude Oil is certainly within low values and companies involved in the commodity as producers and sellers would like higher prices, but people do not always get what they wish upon.
- Day traders who look at the price of WTI Crude Oil and believe it may be too low might be correct. But again, this doesn’t mean their perceptions have anything to do with the reality of current value levels.
- WTI Crude Oil broke below 62.000 USD in the middle of August, and from early April until early June the price of the commodity traded lower values.
Fixated on Higher Potential Values Could be Wrong
Selling in WTI Crude Oil may have got an additional spark lower when the U.S jobs numbers on Friday came in below anticipated results. Large traders in WTI Crude Oil may have interpreted the bad hiring numbers as a potential signal the U.S economy is showing signs of struggling, which may have sparked concerns regarding coming weakness in manufacturing and energy orders.
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On the 30th of July WTI Crude Oil had a brief moment of sunshine above 70.000 USD. Yes, WTI Crude Oil had been around 75.000 in the middle of June, but this was during heightened tensions in the Middle East. The price of the commodity has experienced a constant push lower, yes, with some reversals higher, but WTI Crude Oil trading below 62.000 doesn’t automatically mean there will be sudden strong moves upwards. Day traders need to look at six month charts to consider the potential that near-term pressures may cause the commodity to move lower.
62.00 WTI Crude Oil an Important Ratio
Market psychology is important in WTI Crude Oil. The commodity is being produced in large numbers. While there is certainly a need internationally for energy, ample supply is not going to generate a speculative bidding war for WTI Crude Oil.
- The lower value realms being seen in the commodity will likely remain a price fixture.
- Looking for prices above 65.000 to 66.000 at this juncture feels like a speculative gamble.
- Since the first week in April of this year WTI Crude Oil has spent a significant amount of time trading below 66.000 USD.
- Yes, there have been outliers above, helped by a Middle East conflict in June, but headwinds appear to be rather consistent.
- Day traders who want to be on upsides should be looking for wagers that target specific technical ratios and cash them in with take profit orders.
- Looking for more erosion in the price of WTI Crude Oil cannot be faltered.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 59.800 to 64.500
At some juncture many big traders will believe the commodity has been oversold, but early trading tomorrow and into Tuesday will deliver quick insights. If WTI Crude Oil fails to climb above 62.000 USD in futures trading tomorrow, this could set the tone for lower values to be explored.
Looking for prices below 61.000 USD may feel like too much of a gamble to some day traders, but a look at six month charts shows that the 60.000 value could become a target for speculative sellers. WTI Crude Oil is likely to prove that it is dangerous to take anything for granted in the commodity. A price surge higher is going to be seen this week, but the strength of reversals upwards should be monitored. A price above 64.00 USD in WTI Crude Oil looks expensive for the moment.
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