Crude Oil Weekly Forecast - 02/06: Push Higher (Chart)

2024-06-02 02:35:48

(MENAFN- Daily Forex) WTI Crude Oil saw the 80.000 USD level penetrated upwards on Wednesday of last week, only to falter and then begin a rather steady push lower.

The price of WTI Crude Oil this week will begin trading near the 77.120 mark, this after touching a depth around the 76.640 ratio this past Friday.
The ability to trade downwards and come within sight of values seen the previous Friday while testing mid-terms lows could prove to be significant.
However, before traders rush into to say the dominant trend is downwards, they should acknowledge that a run higher early last week in WTI Crude Oil achieved a high of nearly 80.590 on Wednesday.

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The incremental move higher starting last week only to run into headwinds after month long resistance was tested is noteworthy. Also of importance is that OPEC will be conducting a meeting today to discuss pricing and production. WTI Crude Oil's ability to move back to mid-term lows before the oil conference will spark intrigue and concerns in the minds of speculators Levels and Early Trading in WTI Crude Oil this Week

Large players in WTI Crude Oil will react immediately to news coming from OPEC later today and early tomorrow. There should be no doubt that OPEC would like to see a stable price that floats near higher ratios. Their decisions regarding production levels will certainly affect sentiment. The consideration that WTI Crude Oil is near the lower elements of its healthy price range may mean that OPEC continues production at its current levels. However, I have no inside knowledge. Wagering on what OPEC says is best left to insiders.

From a fundamental standpoint demand and supply remain balanced in WTI Crude Oil. The U.S economy is showing signs of slowing down and this may curtail some usage, but it should not be counted upon. The ability of WTI Crude Oil to remain within sight of the 77.000 price is important and early trading Monday should be monitored intently. One consideration for day traders to lean upon may be the notion that it is highly unlikely that OPEC will say anything which will cause weakness in the price of WTI Crude Oil. They do not want to hurt the price of their commodity Reactions in WTI Crude Oil on Monday

If WTI Crude Oil creates price velocity early on Monday this would be interesting and it would likely be to the upside, and then potentially run into resistance which could create an opportunity for day traders to look for opportunities. However, if Crude Oil were to trade lower early tomorrow this could signal that traders who have been leaning towards bearish sentiment may believe there is more room to explore downwards, this if OPEC hasn't said anything noteworthy which gives sellers concerns.

If the price of WTI Crude Oil falls below 77.000 early on Monday and sustains value below this could be a signal selling sentiment remains strong and lower depths could be tested.
If WTI Crude Oil opens with strong buying day traders are advised to stay on the sidelines and look for resistance to be approached technically and then consider selling for quick hitting lower moves.

WTI Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 75.80 to 80.600

Traders will certainly have to be on the lookout for a surprising statement from OPEC which creates velocity in WTI Crude Oil which is always a danger after their conferences. Yet, if news remains calm and no new developments cause massive reactions, the price of WTI Crude Oil should remain with its current speculative price range.

The move downwards at the end of last week after achieving highs is interesting and may indicate bearish sentiment remains a bit stronger than buyers at this time. Traders looking for lower movement that challenges anything penetrating the 76.000 level may be too ambitious, but the reaction early on Monday and into Tuesday after the OPEC meeting outcome is announced will certainly be important impetus and could cause new dynamics.

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