WTI crude oil ended last week’s session in the strongest part of its weekly technical chart and could remain a speculative favorite in the coming days.
- WTI crude oil ended the trading week near the 83.640 level, this after hitting a high earlier on Friday near the 84.450 mark.
- The commodity started last week in areas below the 82,000 level and saw its greatest depth on Monday April 22 around 80,700.
- For all the talk of the Middle East conflict over the previous two weeks, traders seemed able to focus on the speculative supply and demand implications of WTI crude oil.
Even though energy costs are a large part of the global inflation concerns, the price of WTI crude oil remained fairly polite last week, but its gradual rise could raise some concerns. However, the price of the commodity, by the time it begins trading tomorrow, will be in the middle of its one-month price range. And the inability to stay above 84,000 USD before the weekend will be noted.
Speculative Technical Thoughts on WTI Crude Oil for the Week
The price of WTI crude oil on the previous Friday, April 19, had witnessed a volatile development, as Israel and Iran shook swords and values momentarily jumped to 85,600. However, big traders realized that developments in the Middle East would remain calm, and the low of the 19th fell back to the ratio of 81.170 before ending higher.
There is another view that might intrigue technical and fundamental traders: WTI crude oil ended its trading session last Friday at its highest level since April 16. And as this week begins, the USD remains in the stronger parts of its Forex range. This week’s market open should be watched to see if WTI crude oil remains above the 83.400 ratio. If the commodity is able to maintain its relatively higher price, it could mean that some buying sentiment remains strong.
Concerns from afar and experienced WTI crude oil traders
News from the Middle East should continue to be monitored, but day traders should understand that the big players in WTI crude oil understand the swirl of noise around changing news better than most. The price of WTI crude oil will likely remain driven by supply and demand trading with speculative technicals mixed in with the pace of its value.
- The WTI crude oil low actually fell slightly below the 82,000 mark on Thursday, but then triggered buying.
- The 82,000 support level appears to have given momentum to bullish speculators who believed WTI crude oil had been oversold.
- It only took about 2 hours for the commodity to move from the 82,000 level above the 83,0000 level, then to higher ratios and to the high of the week, finally on Friday.
WTI Crude Oil Weekly Outlook:
The speculative price range for WTI crude oil is between 81.60 and 85.450.
After technically producing an uptrend last week, the start of trading on Monday and Tuesday should be watched. The US Fed will hold its FOMC meeting on Wednesday, but no significant policy changes are expected. The price of WTI crude oil will likely be primarily affected by speculative positions that react to larger forces in the energy market.
The value of WTI crude oil looks quite comfortable at the moment as it sits in the middle of its one-month range. But if the 84,000 level is challenged again quickly this week, it could trigger thoughts that higher values will be sought by buyers who may believe the 85,000 target is legitimate. If the commodity opens trading lower this week and the 83,000 level wobbles, the speed of the downward price momentum will need to be monitored. If the 82.700 to 82.6000 level proves sustainable, it could simply mean that a slight bearish speculative test was pursued and failed. If crude oil were to fall below 82,400, it could create additional bearish momentum.
Ready to trade our weekly crude oil forecasts? Here are the best oil brokers to choose from.
