Crude Oil Weekly Forecast - 11/02: Prices Rose Pre-Weekend

(MENAFN- Daily Forex)

  • WTI Crude Oil will start this week of trading having demonstrated an ability to sustain prices above the 76.000 USD level Thursday and Friday of last week.
  • The commodity began trading last Monday near the 72.700 ratio, opened with some slight selling and tested the 71.380 vicinity.
  • However, from that lower depth which tested support levels not seen since the 17th of January, WTI Crude Oil began to edge upwards.

Buying of WTI Crude Oil was not done in an overly volatile manner this past week, and this sometimes is a sign that bullish behavior is firm and potentially has more strength ready to display. Another rather interesting speculatively bullish sign for day traders was the manner in which WTI Crude Oil finished the week's trading. After surpassing the 76.000 mark of Thursday, then challenging the 76.500 ratio early on Friday and then bursting above the 77.000 USD level momentarily, the commodity was pushed backwards.76.000 WTI Crude Oil Support for Short-Term Considerations

While facing selling pressure this past Friday with four short-term technical fights lower, WTI Crude Oil was able to bounce off the 76.000 level rather well. Having seen a steady amount of buying which propelled WTI Crude Oil above the 77.000 briefly, there was one last selling motion which again tested the 76.000 ratio. However, after touching the support level again, Crude Oil began to find other buyers and hit the 76.500 mark and went into the weekend near the 76.470 price.
  • Early trading on Monday will be a good indication if the buying momentum late last week still has backers.
  • If WTI Crude Oil sustains its current values short-term on Monday, remaining above the 76.400 mark this may be a sign that buying is steady.
  • An early move below the 76.000 level on Monday would indicate, traders have reconsidered their near-term speculative outlooks and could be cashing out winning positions.

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Because the buying of WTI Crude Oil was done rather politely as the commodity moved upwards it is a sign that bullish speculation was not being done in a fearful manner. Meaning risk appetite while certainly keeping an eye on potential chaos of Middle East shipping remains calm. The move higher which started to be generated with more power on early Thursday when WTI Crude Oil was trading near the 73.580 mark was steady and remained vibrant as the week's trading finished. Day traders should monitor early trading on Monday to judge behavioral sentiment. Another move higher early with a challenge again of the 77.000 level would be a bullish signal Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 73.300 to 79.450.

Speculators who look at one week charts may be inclined to suspect the 73.000 support realm is an important inflection point for WTI Crude Oil. The ability to climb above this level and touching the 74.000 price on Wednesday and early Thursday of last week showed a suddenly more bullish buying faction within the commodity. If the price of WTI Crude Oil does get pushed back it will be important to see if the 74.000 level holds and if not – does the 73.000 USD ratio act as support. If so, this may be a signal WTI Crude Oil traders have found a higher equilibrium speculatively and believe higher prices may remain attractive.

From a fundamental viewpoint WTI Crude Oil supply remains firm and producers are working well. The price of the commodity has certainly run into headwinds created by strong supply and lackluster global economic outlooks. The price of WTI Crude Oil appears ready to remain within its known price range and likely not find too much buying momentum above the 78.000 price unless there is a news event this coming week which sparks fear and causes speculative buying. Technical trading appears ready to rule WTI Crude Oil again this week.

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