Crude Oil Weekly Forecast 20/07: Value Range (Chart)

(MENAFN- Daily Forex)

• The price of WTI Crude Oil going into the weekend via the futures market was around the 65.760 level depending on your broker's platform and chosen contract being used for CFD trading.
• The commodity showed once again like the week before, the capability to test highs and apply pressure to resistance levels, only to see the value of WTI Crude Oil fall back to what has become a fairly accepted support level near 64.50, touched on Wednesday.
• However, it is important to point out the lows made last week were an outlier, and most of the support technically appeared rather strong around the 65.000 USD mark.
• Unfortunately for day traders who were not using stop losses and didn't protect against a slightly stronger downturn, cash losses were likely produced. Yet, for traders who choose not to be short WTI Crude Oil and instead were looking for trigger ratios to ignite buying positions, better luck was possibly seen.

WTI Crude Oil Lower Levels and Buying Opportunities

WTI Crude Oil does remain within historically lower price levels. The U.S and global economy, will not mind seeing prices of the energy remain below 70.000 USD for as long as possible. Yes, producers of WTI Crude Oil would like to see higher prices to profit better, but supply remains strong and this is not going to change over the mid-term and quite possibly over the next year or two, this as long as a pro-active production stance is taken by the U.S White House.

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The perception that the lower price realm is going to create technical wagering opportunities for speculators is correct. The problem is predicting short-term moves in a marketplace dominated by large players who aren't too concerned about what they consider fractional changes to WTI Crude Oil and are trying to make sure they are protected over the mid-term. Choppy conditions in WTI Crude Oil may continue to persists. While supply is apparently solid, perhaps it is wise to take a look at economic sentiment outlooks and how this could generate price action for WTI Crude Oil.U.S Economy and Manufacturing

While not widely reported by the news this past week, the Philly Fed Manufacturing Index which was widely expected to come in with a rather negative number, actually produced a much improved sentiment reading.

• The U.S economy is showing signs of improving the past few weeks.
• Better U.S retail sales and consumer sentiment have been seen, if manufacturing optimism is improving this could equate into more demand for WTI Crude Oil.
• Day traders should not get overly confident about the upside, and moves lower may be able to be used as a place to look for some buying potential.
• Resistance this week did prove to be slightly vulnerable, and early last Monday the 68.000 ratio was toppled.

WTI Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 64.300 to 68.700

WTI Crude Oil while traversing the lower elements of its long-term price range has shown rather durable support levels in recent weeks. The price of the commodity may have found a comfortable equilibrium regarding lower realms and the possibility of wagering on momentum higher is attractive. But overconfidence in a buying position should be tempered by the solid supply levels in WTI Crude Oil. Looking for prices over 69.000 and 70.000 in the coming days is likely a step too high.

Traders tempted to use the 65.3000 to 64.900 ratios as place to consider looking for higher action might be making the right choice. However, if WTI Crude Oil were to break below the 64.500 price and suddenly start challenging the 64.000 mark, this would have to be viewed with trading suspicion and concern. If the U.S economy continues to show improvement this could serve as a solid base for WTI Crude Oil moving forward for speculators.

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