As traders await the beginning of WTI Crude Oil trading on Monday morning and over the coming week in the commodity, they can reflect on lessons learned over the past few sessions. A flare of upwards momentum as anxiety cascaded throughout the global markets because of rising tensions in the Middle East certainly effected results in WTI Crude Oil causing a rush upwards, but as Thursday and Friday demonstrated a calmer wind blew in the commodity as the weekend came into sight. It appears experienced big players understood that a certain nervous line would not be crossed, now, day traders can decide if this line translates into adequate support and resistance clues.
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Middle East Rhetoric Cools, WTI Eases Off Highs
Less noise has come from Iran and the U.S the past couple of days. WTI Crude Oil results with a slight downturn in price as emotions have seemingly calmed are on exhibit. The more tranquil setting on the Middle East soundstage is being embraced by global markets as a sign that neither Iran or the U.S want to escalate the still dangerous circumstances that exist.
If news developments in the coming hours and into tonight can remain at an acceptable scale, there is a possibility this will affect the opening of WTI Crude Oil trading in a manner early on Monday that translates into a less extravagant marketplace. The price of WTI Crude Oil has been a talking point for a handful of months, and it will remain important. However, the possibility of a tolerable level of loud threats and infrequent military action could propel WTI Crude Oil into an intriguing test of values short and near-term for speculators exists.
WTI’s Run From $80 to Nearly $92.50 Tests Nerves
By mid-week the price of WTI Crude Oil was starting to set off alarm bells in global financial institutions. An escalating storm of buying in WTI Crude Oil had been ignited early last Monday when the $80.000 price was being challenged and then a flood gate of buying orders began to emerge, this continued into early Thursday when highs saw a price of nearly $92.500. Alarm bells were being sounded in various media centers as folks began to write headlines that suggested WTI Crude Oil could once again threaten $100.000.
But then an almost predictable thing happened in WTI Crude Oil, large traders likely started to look at technical results the past handful of months and checked on fundamental supply and logistic routes. Amplified by the understanding that President Trump doesn’t appear ready to step over a certain line which would highlight too much aggression, WTI Crude Oil started to pull back. From mid-Thursday and into early Friday the price of the commodity sank and went below $87.000. Yes, in the last couple of hours WTI Crude Oil began to gain and went into this weekend near $89.495 as some large players hedged. But a lesson for day traders had been served, highlighting large players are accustomed to the noise from the Middle East and react using past evidence.
Calmer Middle East Conditions Hint at a Softer Open
Tomorrow’s trading will offer an immediate test of emotions in WTI Crude Oil. Given the fact that news from the Middle East has remained somewhat manageable from the military conflict standpoint the past day and a half – meaning there has not been an escalation in tensions – and signs that Iran and the U.S are starting to speak to one another again have been made public. The choice in WTI Crude Oil regarding price direction upon tomorrow’s opening could create a window for calmer air to enter the thinking of traders. Early price action on Monday might be looking at the potential of WTI Crude Oil testing support levels seen on Friday. With half a day or so left before the WTI Crude Oil market opens, it makes sense that large traders feel more tranquil.
WTI Crude Oil Price Chart
Headline Reversals Could Quickly Break WTI’s Calm
Let’s not be dramatic, but dangers still lurk in WTI Crude Oil. This isn’t a commodity that retail traders should feel too comfortable because the wheels still can come off what may appear to be a smooth ride. Last Thursday’s highs show that momentum can take WTI Crude Oil higher and that another sudden snap of a large branch could make folks more nervous which could cause upwards momentum to suddenly spark. Day traders need to pay attention to the shifting rhetoric from the U.S White House and from Iran, because both sides have shown a tendency to reverse the plot.
Monday’s Open Will Test Whether WTI Calm Can Survive New Shocks
Tomorrow’s opening in WTI Crude Oil will serve as an immediate barometer of emotions among the influential powers in the commodity. If news developments over the next twelve hours remain quiet, then it reasons that conditions in the marketplace may begin to look for cautious lower terrain. However, sudden developments in the Middle East remain a distinct possibility and any surge of noise could cause new interpretations which might make WTI Crude Oil become choppy and potentially see upwards pressure.
WTI Crude Oil Short Term Outlook:
Current Resistance: 89.800
Current Support: 89.050
High Target: 91.500
Low Target: 86.400
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