Crude Oil Weekly Forecast - 08/06: Presistance Test (Chart)

(MENAFN- Daily Forex)

• Speculators last week in WTI Crude Oil got rather solid price range from Monday until mid-Friday. A price realm between 61.600 and 63.300 dominated most of last week with plenty of flourishes and enough fast action to keep traders mindful.
• However, as Friday developed a bolt upwards in WTI Crude Oil took place and when the 63.300 level was penetrated, the commodity began to test 63.500 suddenly and went into the weekend near 63.900.
• WTI Crude Oil will open this week's trading near a level last seen only momentarily on the 20th of May, this before reversing lower by the 21st to within sight of the 60.000 USD mark.
• Which is likely going to lead to a suspicion by some traders who have been pursuing constant bearish price action to believing another fast move lower will come into effect sometime this week. But day traders should be cautious. Yet, support levels have started to prove durable and should be given consideration.

Resistance and Speculative Traps for Contemplation

While WTI Crude Oil did see some sustained price action over the 64.000 ratio on the 23rd of April it didn't last for long either, within a week the price of the commodity was dramatically lower, by the 5th of May WTI Crude Oil was near 56.000 USD. However, importantly until the first week of April WTI Crude Oil was in fact trading near 70.000 and had been doing so since the first week of February.

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While supply is efficient, the question some day traders may want to consider is the potential of a recalibration of behavioral sentiment taking place regarding global economics. The price of Crude Oil dropped dramatically during the first week of April when President Trump made it clear he would go forth with his tariff policy. But what if the historically 'accepted' price of WTI Crude Oil is higher and bearish attitudes may be looking at circumstances wrong?Reasons Historically for Higher Price Concerns

The question that should be asked, is if WTI Crude Oil dropped significantly in the first week of April because of a fear demand would take a hit if international players felt global manufacturing sectors would suddenly be slowed?

• What if sentiment has shifted to a more comfortable feeling that tariff policy will not be as tough now and that demand for manufacturing is going to improve?
• Does that mean buying demand will now seep more into WTI Crude Oil and cause the commodity to begin testing higher realms.
• Let's remember prices below 67.000 USD for WTI Crude Oil is a lower ratio than is normal.
• Typical prices for WTI Crude Oil may be more realistically near 67.000 to 73.000, when long-term charts are considered higher ranges even during President Trump's first tern can be seen.

WTI Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 62.000 to 66.300

The past couple of weeks in WTI Crude Oil have seen a widening of the price range. Resistance levels have been tested the past two weeks. The sudden move higher last on Friday could be a warning sign that bullish perspectives believe the commodity should be higher and incrementally produce upwards pressure. Traders need to remember that prices for WTI Crude Oil below the 70.000 USD mark are considered rather low in historical perspective per the price of energy.

This week's trading will be intriguing and day traders should be extremely careful. If sentiment among large players is starting to become more confident that demand will increase because there is less fear about tariff implications, this may open the door to higher prices. There is a chance certainly that WTI Crude Oil will selloff again this week, but from a speculative viewpoint the past two weeks have produced an elaborate test of reversals, with higher price action showing clues of testing resistance. Another sign that the price of WTI Crude Oil may be edging higher is that support levels also have incrementally rising the past few weeks.

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