Day traders may feel as if last week was an opportunity to ride momentum lower in WTI Crude Oil, but be unsure of where things are going next.
After essentially starting the past Monday with a spike higher that put the commodity at nearly $97, this after closing the prior week before around $90, another set of volatility awaits WTI Crude Oil. The commodity went into this weekend near $83,60, this after actually touching the $79,00 vicinity on Friday.
Large speculators in WTI Crude Oil have had a month and a half of wild rides to navigate and there are more coming. News this weekend shows there is a lack of clarity regarding what is taking place in the Hormuz Strait because of the Iranian war saga. The U.S White House which had been saying they had blockaded the waterway, did admit that Iran had shut off some the shipping as of Saturday. And Iran seems to be saying with conviction via some of its mouthpieces that the strait is closed again.
WTI Crude Oil and Supply
Via international ocean navigation sites it is being reported that shipping has slowed down in the Hormuz Strait once again. This article is being written on Sunday morning and as most people know who are following the developments from the Middle East, things can change fast. The closing price of WTI Crude Oil around the $83,60 mark is certain to endure another spike on early Monday. The direction of that spike tomorrow and how it is perceived will depend on positions being held now and what will happen in the first hours of WTI Crude Oil opening.
Depending on news developments over the next 24 hours, Monday is certain to be another turbulent trading situation in WTI. The ability to traverse to a low of nearly $79 on Friday shows where optimistic outlooks can take Crude Oil prices. The bounce upwards as the weekend set in shows the quick reactionary results that can flourish. Value velocity in WTI Crude Oil remains a danger. Supply is the key in the short-term and if the Strait of Hormuz suffers from ships turning around and deciding not to enter the waterway, the price of WTI Crude Oil will be disrupted upwards too.
Near-Term and Gambling on WTI Crude Oil
Certainly there is money to be made by speculating on WTI Crude Oil because of its dynamic price action it is now presenting. Picking the right direction based on perceptions is the most important piece of the gambling endeavor.
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WTI Crude Oil technical prices are of interest for traders to gauge sentiment.
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However, the fast paced action of the commodity is a bit like a roulette table depending on which news generates the biggest reaction.
WTI Crude Oil Weekly Outlook:
Speculative price range for WTI Crude Oil is 75.000 to 105.000
So where is the price going to go in WTI Crude Oil? If there is an early Monday morning lurch upwards above $90 this will indicate nervousness has returned and large traders are actually uncertain of what is taking place in the Strait of Hormuz. This seems to be a likely reaction while trying to get a sense of the news on Sunday. The potential price differential in WTI Crude Oil via lows and highs in the coming days could be electric.
Yet, if things change towards positive sentiment again today into tomorrow, and if this is accomplished via proof that oil tanker shipping is functioning, then WTI Crude Oil could remain tranquil. The ability to go below $80 is possible once again, but this will need additional proof of facts for large traders to create downwards momentum. Betting on WTI Crude Oil by day traders must be done carefully and strict risk management is needed. The commodity will remain a focus for all global investors this week.
