- WTI Crude Oil did find buying momentum early last week, escalating to a price within the 70.000 USD per barrel ratio on Wednesday. Support during the past handful of days has remained elevated.
- A look at a one month chart shows WTI Crude Oil is within the higher elements of its price range. However, the selloff which did develop in a rather steady manner late on Friday did bring the commodity back into a range which will likely intrigue speculators.
- WTI Crude Oil traders are encouraged to remain skeptical of narratives surrounding the move higher in the energy. Talk of nervousness regarding Trump Middle East policy and tariffs were offered as reasons for the higher move early last week, but large players likely had other reasons for becoming stronger buyers too.
- The potential that spring and summer WTI Crude Oil inventories are being accounted for and acted upon should be considered.
After touching the 70.000 vicinity on Wednesday WTI Crude Oil did start to show some regression. The commodity has gained since touching lows in the second week of March, but it also remains within shouting distance of these lows. Yes, it can be argued that the move towards the 70.000 USD mark shows that buyers are active and may be leaning to the notion the commodity should be higher.
But the same perspective can be used regarding lower values. In other words it is highly likely WTI Crude Oil is trading rather comfortably within a known range. After having touched lows in the second week of March, support levels clearly showed they are still going to cause reversals higher when tested, and the same can be said for resistance. Day traders need to concentrate on technical perceptions in WTI Crude Oil and consider if the range will stay within a higher element like 68.000 to 70.000, or if it will now start to show another test of lower values.
Speculators should brace for loud tantrums via media outlets depending on the people speaking regarding the Trump administration and its tariff rhetoric in the coming days. Whether or not tariffs will factor into the price of WTI Crude Oil is important considering Mexico and Canada are both involved in the negotiations.
- While supposedly not a part of the items which will face penalties, there is always a possibility negotiations could go badly.
- However, U.S WTI Crude Oil and energy supply from Canada and Mexico are supposed to stay safely tucked away without the fear of sanctions.
- Trading early this week will be a good measurement of nervousness.
- And day traders should remember just because they may believe in bad outcomes and be anxious themselves, large players in WTI Crude Oil may not be worried.
- Prices may remain rather choppy up and through Wednesday of this week as the White House talks about tariff implications and perhaps after things calm down, the commodity will too.
The higher elements of WTI Crude Oil have certainly started to be tested the past two weeks. If WTI Crude Oil opens tomorrow higher and shows an ability to sustain prices over 69.000 USD this may mean nervousness remains a factor in near-term trading conditions and the 70.000 may get another test. Speculators should keep in mind the possibility that price velocity can increase as large players in WTI Crude Oil position their outlooks based on sentiment via near-term considerations.
If conditions show a relative calm later this week it is possible WTI Crude Oil may begin to become more tranquil and see stronger selling emerge. Risk management is highly encouraged early this week as narrative plays out and gets discussed publicly. Behavioral sentiment doesn’t have to be correct to influence the marketplace, and WTI Crude Oil may get extra attention in the coming days as a barometer for the broad markets.
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