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MENAFN- Daily Forex)
- WTI Crude Oil day traders looking for a sustained trend downwards did not have an easy time last week.
- Yes, the commodity did finish the week's trading below its starting point of nearly 71.000 USD, but from the onset fast speculative pricing was seen.
- Initially rather strong upwards momentum was seen on Monday and Tuesday of last week which created a high around the 73.360 mark, but this higher levels sparked strong selling.
Traders looking for clues about sentiment in WTI Crude Oil could probably walk away with different perspectives. The selling that began on Tuesday after the highs were seen continued into Thursday and the 70.100 ratio was challenged. This was followed by buying which actually brought the 72.000 level come into view on Friday, but then selling developed again.
Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Speculation and a Battle of Short Term Momentum
The notion that WTI Crude Oil finished the week lower than it began solidifies the potential thought that sentiment remains cautious in the commodity regarding buying positions. The ability to finish near the week's lows opens the door for ideas about lower volume. The 70.000 price level is certainly in sight and a likely target by more than a handful of large traders.
However, the ability to show strong upwards price momentum on Monday into Tuesday, and then again Thursday into Friday shows a downwards trend is not a sure thing. Day traders who continue to look for downside may be proven correct but conservative approaches to WTI Crude Oil will remain important. The move higher and ability to go above the 73.000 ratio early last week may be another clue about where resistance will spark strong reactions Crude Oil Outlook and Looking for Lower Prices
WTI Crude Oil remains intriguing because of President Trump's energy policies. Price surges upwards in WTI Crude Oil should remain suspicious. However, day traders who are using too much leverage will likely find that upwards momentum which could be used as a warning sign and alert speculators to the potential of reversals lower, may have wiped out their wagers as the commodity goes in the wrong direction.
- Smaller traders need to understand that WTI Crude Oil can move fast and create havoc if risk management is not being properly used.
- The notion that downwards price action will remain the overwhelming sentiment in the commodity might be proven correct, but traders cannot bet blindly on a bearish trend.
- If WTI Crude Oil breaks below the 70.000 USD mark and sustains values below and starts to show prices of 69.750 to 69.800 as resistance, this could be a signal for further moves downwards.
WTI Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 68.600 to 72.300
The movements higher in WTI Crude Oil early last week should serve as a solid lesson that even if bearish sentiment has been expressed and seen in the commodity, momentary reversals higher are going to happen. The trend of WTI Crude Oil has been solidly lower the past month. WTI Crude Oil is near the lowest part of its one month chart technically and it is now hovering important psychological support. Have no doubt that large speculators in WTI Crude Oil feel that 70.000 is an important price in the commodity.
If WTI Crude Oil is able to break below this ratio early this week it could set the table for further lows to be demonstrated. The Trump Effect in the energy sector – just like in Forex – is real and large traders understand that not only is the new White House administration talking tough, but it is acting fast. Reversals higher in WTI Crude Oil will certainly be seen, the question is where resistance will prove durable. If the commodity stays below 71.000 USD early this week, wagering on downside pricing remains a wager that is alluring.
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