Another dose of speculative momentum will hit WTI Crude Oil on Monday morning. This because the U.S White House (yes, President Trump) has announced once again a change in direction – making it the 50th shift or so – regarding his intentions in the Middle East. Speculators at this point may feel as if they have their heads on a swivel as they try to navigate the news gyrating from the White House and try to determine how it will impact WTI Crude Oil – which it will.
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Serious Negotiations Keep WTI Crude Oil Price Range Unsettled
WTI Crude Oil has seen a price range develop which shows technical turnarounds based on the level of threats coming from President Trump and from Iran. At some point large players who are the ones positioning themselves with near and mid-term outlooks may grow tired of the constant changes in negotiation winds which impact the price of WTI Crude Oil.
However, large players and retail day traders are being held captive by the serious nature of the Middle East situation. When Monday’s trading opens for WTI Crude Oil futures folks will have to ask themselves not only who they believe, but what others’ believe. Perceptions regarding the Middle East saga are clearly effecting the price of WTI Crude Oil and this is not going to change in the coming days. Speculators will have another compelling set of rhetoric they will have to interpret.
Rough Framework Highlights Tension Between Threats and De-escalation
WTI Crude Oil finished near $86.530 going into this weekend. At one point on Friday the commodity was around $81.800. Day traders waking up this morning and reading that the U.S White House has announced that it has a ‘rough framework’ via negotiations with Iran for a potential deal are likely not surprised. This news of a potential ceasefire agreement – once again – comes after media reports that the U.S was poised to strike Iran energy infrastructure.
President Trump’s threats while waving a big stick and then backing down are causing ripple effects in WTI Crude Oil and the latest round of developments will cause an immediate reaction on Monday. The relatively higher prices seen in WTI Crude Oil which incrementally rose, now may see some traction downwards. While some large speculators may be asking how long the new rough framework agreement will be able to be sustained before another escalation in military conflict is threatened or takes place, the big players in the commodity will react to the promise of de-escalation for the moment.
Whipsaw Price Reversals Indicate Cautious WTI Crude Oil Positioning
Day traders may feel as if they are getting whipsawed by the barrage of reversals in WTI Crude Oil, which are starting to look like a well-practiced dance. Speculators need to understand that constant shifts in outlook are likely to continue and this is a definite reminder to make sure they are not over-leveraging their wagers on WTI Crude Oil.
Volatility on Monday morning is certain to be seen and it would not be surprising to see additional changes filter into the marketplace. While downwards momentum may be seen early, a legitimate question is where WTI Crude Oil will start to idle and show support if large players remain wary about another more aggressive round of rhetoric between the U.S and Iran being heard near-term.
Middle East Narrative Continues to Influence WTI Crude Oil Values
Traders need to remain careful. The sudden shifts of velocity in WTI Crude Oil and jumps of one and two dollars in a few short moments must be treated as a threat as the commodity is being pursued via wagers. Large players who are well funded may be able to handle the shifting circumstances in WTI Crude Oil much better, but even they are uncomfortable. The potential for a sustained thrust downwards near-term is enticing for consideration, but the prospect of additional military escalation needs to be treated with care because ladies and gentlemen we have seen this demonstrated a handful of times before over the past couple of months via the Middle East storyline.
Fog of War Underscores Shifting WTI Crude Oil Speculative Targets
The fact that President Trump has uttered another change in direction in the past half day should serve as notice to all WTI Crude Oil traders to remain ready for the prospect of additional momentum shifts in price. It may be too easy to suggest that all of the rhetoric and military conflict is a normal part of the ‘fog of war’, but at this point speculators need to treat the constant movements as a risk to their chosen price targets when pursuing WTI Crude Oil.
WTI Crude Oil Short-Term Levels Highlight Nearby Risk Boundaries
Current Resistance: 86.790
Current Support: 84.000
High Target: 87.400
Low Target: 78.900
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