WTI Crude Oil Weekly Forecast: Price Drop Ensues After Support Levels Fade

The price of WTI Crude Oil went from running into headwinds and lingering within the upper realms of its three month price chart to falling below important support levels rather quickly last week. Pixabay

As the price of WTI Crude Oil opens this week it will be near the 77.930 USD ratios, which had last been traded in a meaningful manner on the 13th of March.

WTI Crude Oil which has been flirting with higher prices and testing resistance on a fairly regular basis a bit over the past month suddenly found selling pressure build.

When the 82.000 price level was penetrated lower on Tuesday, momentum didn’t slow down and the 81.000 target began to come into sight and by Wednesday this level was brushed aside too.

Wednesday’s trading in WTI Crude Oil saw a fall from slightly above 81.000 to the 79.000 mark emerge. And downside pressure was not finished yet, Thursday and Friday did produce slight reversals higher, but selling continued and the 80.000 price level looked further away as traders began to close their offices for the weekend. Supply Remains Abundant and WTI Crude Oil is TranquilWhile the media continues in many cases to shine a light on the Middle East conflict, experienced energy traders have proven they are tranquil and are paying attention to fundamentals which show Crude Oil remains abundant and no shortages are present. While peace in our time has not been achieved, developments from the Middle East didn’t stir speculative fires this past week.The downturn in U.S GDP numbers last week may have also played a role in the ability of WTI Crude Oil to produce a price decline. Large players may be more cautious about pursuing long positions if they feel the U.S economy is about to enter a bona fide downturn. Production Levels and Looking Ahead TechnicallyWhile inventory of WTI Crude Oil remains efficient and supply from the large producers is flowing, some analysts are pointing out that OPEC while conducting its next meetings could make changes to their production in order to combat the faltering prices. However, traders should understand the OPEC meetings aren’t until the 1st of June and until then production levels are not going to be changed dramatically. The question now for WTI Crude Oil is if it will sustain values below 80.000 USD in the coming days.

Traders with a taste for selling will have to pull out three month technical charts to observe depths last traded in the second week of March.

While the 77.000 realm below is certainly important, the price of WTI Crude Oil may start to test a choppy range between 77.000 and 79.000 over the near-term.

The ability to trade lower with rather considerable price velocity last week is newsworthy and speculators should monitor the start of WTI Crude Oil trading this week to gauge existing behavioral sentiment.

WTI Crude Oil Weekly Outlook:Speculative price range for WTI Crude Oil is 75.200 to 82.600If the 77.250 mark below starts to get tested and movement sustains lower depths this could set off a rather intriguing speculative battle. Any trading below the 77.000 mark could set off alarm bells and cause technical traders to consider lower values seen via six month charts. Before WTI Crude Oil traders say anything below 75.000 USD is too low, they should remember that the commodity was actually testing values below the 70.000 realm on a fairly consistent basis from mid-December until the start of the second week of January.The trend lower in WTI Crude Oil which has been produced since the middle of April also coincides with nervousness regarding USD trading apexes and concerns about the U.S economy. Yes, reversals could certainly be seen in WTI Crude Oil, traders cannot bet on a one way direction to unfold. However, resistance above after getting tested in the coming days, may present an opportunity to sell WTI Crude Oil for speculators who manage their risk taking tactics well and believe downside pressure is stronger.More By This Author:USD/CAD Analysis: Anxious Speculative Wagers As Higher Realms Touched
GBP/USD Weekly Forecast: Fight Upwards After Long-Term Depth Was Challenged
WTI Crude Oil Weekly Forecast: Slight Move Higher