Crude Oil Weekly Forecast - 07/07: Highs & Wagers (Chart)

(MENAFN- Daily Forex) WTI Crude Oil established its high for the week on Friday around the 84.500 mark before moving slightly lower and finishing around the 83.290 level as the day concluded.

• Speculators should brace for a test of WTI Crude Oil prices early this week as full trading volumes return to the commodity.
• Last week was able to produce a sustained higher price range even in the wake of lighter than normal trading volumes due to the U.S holiday and many large players being away from the energy market.
• WTI Crude Oil went into the weekend near the 83.290 level, but a high on Friday was seen around the 84.500 mark which likely raised suspicious eyebrows.

WTI Crude Oil has produced a rather consistent incremental bullish trend since the first week of June when the commodity traversed around the 72.000 level momentarily. The ability of WTI Crude Oil to climb higher the past handful of weeks has been noticeable and the price remaining comfortably above the 80.000 mark is of interest. Now that full volumes will return early this coming week, commodity traders will watch the price of WTI Crude Oil intently to see if highs can be sustained and the upper price realm remains a playground for speculators.

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WTI Crude Oil is Strong but U.S Economic Data is Lackluster

U.S data has started to show signs of a weakening economy, but WTI Crude Oil in the meantime has climbed in value. Traders may view this as an unbalanced marketplace, but they should remember future contracts of the commodity are geared towards mid and long-term outlooks. The price of WTI Crude Oil has certainly not been hurt yet by faltering GDP numbers from the U.S or manufacturing reading that are not optimistic.

The price above the 83.000 mark going into this weekend looks like it may be speculatively high. The move upwards on Friday above the 84.000 ratio had last been seen in late April, this when WTI Crude Oil was starting to show a bearish trend. The opening of trading this week should be monitored closely because the return of full volumes on Monday and Tuesday will indicate where behavioral sentiment is leaning. If WTI sustains values above the 83.000 realm this would be speculatively interesting Crude Oil Traders may Challenge Bullish Trend

Traders who believe WTI Crude Oil has climbed too high may be proven correct, but they should be cautious early this week if they do not have deep pockets. Traders should be wary for the potential of another bursts of higher price movement early this this week which then could generate into a reversal lower. Speculative bulls have shown the ability to cause upwards momentum certainly; the question is if and when they will literally run of power.
Support around the 82.750 mark should be watched and if it falters early this week, this could be a sign bullish behavior may be ready to weaken Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 80.200 to 85.800

The return of full trading tomorrow and Tuesday will be intriguing for day traders to watch. Potential early volatility could strike in WTI Crude Oil if there is a rise in price and the 84.000 level proves to be adequate resistance and a reversal lower occurs there is a potential a move lower could develop. Traders should be on the lookout for price velocity.

WTI Crude Oil has attained its bullish run higher without a great deal of volatility; this is often a sign that buying is calm and actually may have some additional power to display. If WTI Crude Oil challenges the high of last week and suddenly starts to go towards 85.000 this would be a sign large players remain active and should be taken seriously and the bullish trend can continue.

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