A lack of clarity has created an upwards trend for WTI Crude Oil in recent days and speculators who choose to trade based on momentum perceptions have seen a clear technical pattern emerge. Yesterday’s action in WTI Crude Oil did display a reversal lower, but not enough power to leave the higher elements of the commodity’s value behind. Large players in WTI Crude Oil appear to be less confident about a promised negotiated agreement between the U.S and Iran. Instead a state of confusion has generated a steady increase technically in WTI Crude Oil since the start of this week. Day traders have a chance to choose their wagers based on prevailing sentiment.
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Upside Momentum Reflects an Ongoing Sentiment Test
As WTI Crude Oil traverses its higher range and values not seen since the end of July, retail speculators must rely on interpretations of geo-politics and the actions of large players. The commodity is locked within a battle of behavioral sentiment. A haze of news developments which had suggested a negotiated agreement between the U.S and Iran has not been able to be produced. This has led to large players leaning into past failures regarding ‘announced’ ceasefire news and start to look at WTI Crude Oil with skeptical perceptions.
The upside momentum created since last Thursday’s lower depths has been rather technically efficient for day traders. While this morning’s reports from various sources still talk about the potential of an agreement between Iran and the U.S, day traders need to understand large players seem to be treating the WTI Crude situation as a ‘must be seen to be believed’ testing ground. Until a bona fide agreement is cited and shown, the commodity will remain without clarity, suggesting more nervous price action to come.
Middle East Uncertainty Continues to Weigh on Price
WTI Crude Oil almost touched the $85.000 level yesterday, today’s early results in futures show a current price around $84.250. Considering that WTI Crude Oil opened around $78.650 on Monday, this after going below $75.000 last Thursday is a solid indication large players no longer feel confident about the U.S White House’s progress regarding a Middle East agreement being able to be completed anytime soon – nor confident about a lasting ceasefire.
Reports late yesterday show the Hormuz Strait is still suffering from occasional military action. Fear of another escalation between Iran and the U.S may be less heightened than it was two and three weeks ago, but the longer the situation in the Middle East continues to offer no clarity – except a very fragile ceasefire – larger players are likely to remain nervous. The current price of WTI Crude reflects the current sensitive circumstances. Day traders must remain alert to all developing news between the U.S and Iran.
Price Swings Highlight Sensitivity to Sudden News
Price velocity in WTI Crude Oil remains problematic for smaller traders. Too much leverage and the potential of a sudden move caused by an optimistic diplomatic announcement, or contrarily - a military escalation have large players on a nervous edge. Yesterday’s highs certainly showed the ability to pull back when $85.000 was challenged, but the cautious selling seen afterwards actually started to produce upwards momentum again when a low of around $81.650 was seen.
Fast conditions remain a part of WTI Crude Oil and this will remain a strong element of the tense landscape until clarity develops. Current conditions suggests that the commodity will remain volatile. While nervous impetus has created upwards traction in the marketplace, the possibility of President Trump suddenly announcing a deal with Iran and its impact needs to be considered, even if it feels farfetched.
Fast Price Moves Point to Persistent Volatility
Day traders and large players have their heads on a swivel as they listen to a complex mix of news developments, but also deal with technical values swiftly changing in WTI Crude Oil. This formula is unlikely to change and must be prepared for with strict risk management. The price differentials in WTI Crude Oil remain fast and dangerous for traders who refuse to acknowledge the speed of the market. Impetus from a variety of sources will continue to create intraday volatility in WTI Crude Oil regarding changes in value.
Near-Term Outlook Suggests Continued Rapid Swings
Technically the price of WTI Crude Oil may look expensive to those with optimistic natures, but the sustained upswing in the past couple of days reflects the confusing nature of the Middle East and lack of an agreement between the U.S and Iran. Price action in WTI Crude Oil has been fast but it has also proven tentative because of the rapid movements, this is unlikely to change near-term.
WTI Crude Oil Short-Term Outlook
Current Resistance: 84.650
Current Support: 84.100
High Target: 85.900
Low Target: 82.200
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