WTI crude oil is scheduled to begin trading on Monday, with the commodity entering the weekend near a cash price of $71.360 per barrel. This price is close to the lows reached last Wednesday as oil struggles to achieve upward mobility. Last week’s low was set on Thursday when WTI crude oil hit $69.000. Depths of this value were last seen in late June.
Day traders who consider themselves commodity experts may be inclined to think the price of WTI oil is too low. However, even if this concept proves to be a sound conclusion in the medium term, the current value proposition demonstrated in the market is that the power of dynamic commodity trading that only large companies understand continues to suggest that it is working.
Some analysts argue that demand for WTI crude oil is actually still high, but that U.S. supply levels are once again consistently good, leading to lower energy prices. There is. However, this story is hotly debated, and the fact that OPEC and other oil producers have cut production suggests they have complex questions about fundamentals as they seek to raise prices for the commodity they value. Indicates that the puzzle needs to be considered. And unfortunately, when it comes to WTI crude oil, the facts on the ground are hard to come by for day traders, making this product always technically speculative.
- Later this week, psychological support turned out to be weak around USD 70.000.
- For speculative bullish traders looking to bet on a reversal, upward momentum in WTI crude remains difficult to spot.
- The failure of WTI oil prices to rise above the $72,000 mark since last Wednesday led us to decide to buy a “long position” above this mark and hold the trading position heading into the end of this week. This will put additional pressure on potentially large traders.
Risk appetite in global markets has led to aggressive buying in many assets over the past month, especially US stock indexes, but this has not translated into higher energy prices. WTI crude oil and other energy resources are trading near critical lows and have not yet demonstrated the ability to generate a sustained reversal. WTI oil traders may believe that commodity prices need to rise, but they need to remember that “need” is just a perception in the actual market. Crude oil is trading lower than before and technical traders looking at the 6-month and 1-year charts can clearly see this.
The speculative price range for WTI crude oil is $67.100 to $76.200.
Last week’s highest price for WTI crude oil was recorded at the start of trading last Monday. There is always the possibility that a commodity could suddenly soar, but day traders should pay attention to the gradual increase in downward pressure this year since late September. While the urge to take part in WTI crude oil’s massive reversal rally and reap solid profits is certainly tempting, it can also lead to surprisingly large losses if speculators are not careful. If WTI oil prices open tomorrow without being able to challenge the 72.000 mark during the day, this could be interpreted as a bad signal via behavioral sentiment.
This could become dangerous if WTI oil actually falls and $70,000 comes back into view. Sustained price momentum below this level could cause a spike in volatility that could push the commodity to new lows as large traders cover their bets. A sudden turnaround in WTI crude oil requires sustained trading above $73.000. However, it must be reiterated that the downward trend in WTI oil cannot be simply ignored when considering short-term speculative positions. Just because you think something can’t go down in value doesn’t mean you’re right.
