Day traders have been treated to more drama within the WTI Crude Oil theatre. Excitement continues to be stirred by tantrums between Iran and the U.S which are producing swirling higher prices in WTI Crude Oil. Adding to the suspense for speculators considering pursuit of WTI Crude Oil is the U.S Labor Day holiday which will be celebrated on Monday, meaning many trading platforms will have to be looked upon suspiciously if brokers are allowing folks to participate in what could be choppy and thin markets.
WTI Crude Oil Volatility Rises as US-Iran Tensions Escalate
WTI Crude Oil continued to traverse higher elements on Thursday and Friday for the most part, except lower price action on early Friday was displayed and then produced a counterattack upwards. From a sentiment standpoint the commodity remains locked in step with influences from the Middle East. And last night’s sideshow from Iran and the U.S demonstrated more military escalation. Iran reportedly fired on U.S Naval vessels on Saturday and the U.S retaliated at night by wrecking three Iranian oil tankers.
The heightened tensions between Iran and the U.S are limiting the hopes of quiet being delivered. However, consideration must be given to the notion the long U.S holiday may allow for large players to seek some form of tranquility on Monday and look for less nervous markets on Tuesday when volumes are certain to increase. Yet, the exact opposite could develop, and Tuesday’s opening in WTI Crude Oil could prove to be a spectacle for price action.
WTI Holds Near $92 as Middle East Supply Risks Persist
Depending on what platform retail traders are using, WTI Crude Oil closed around the $91.780 vicinity on Friday showing an ability to creep higher as the weekend came into sight. The upwards move could have reflected nervous sentiment being displayed as large players realized that they would be away from their positions for the next three days. Cash and futures prices will collide on Tuesday’s opening in WTI Crude Oil and should be monitored.
Retail traders looking to pursue WTI Crude Oil at this juncture have likely come to understand over the past seven months that momentum shifts occur quickly. From now until late Monday night plenty of news developments could happen which can effect sentiment. The price of WTI Crude Oil is showing an ability to sustain values over the $90.000 level and there doesn’t seem a lot of optimism on the horizon regarding the Middle East situation.
Can WTI Crude Oil Retest $94 as Holiday Liquidity Thins?
Traders intent on thinking about the prospects of higher WTI Crude Oil prices emerging may be looking at Thursday’s prices which brought the $94.000 level into sight and creates a target for upcoming moves. If conditions between Iran and the U.S remain fragile going into Tuesday, speculators cannot be blamed for thinking about potentially higher climbs.
The problem may timing entry into WTI Crude Oil because volumes on late Monday and early Tuesday depending on where a trader is located could become volatile as brokers’ platforms become more active. And then there is the notion that the worst of the recent storms between Iran and the U.S will begin to pass and calmer conditions could be seen, setting the potential for a trap door for speculators.
Hormuz Supply Routes Keep WTI Crude Oil Volatile
Friday’s steep fall lower did break below the $90.000 realm and some traders may have believed they were seeing confirmation that larger players still consider supply routes working. Reports on Friday from various sources definitely were trying to highlight that oil tankers were still operating in the Hormuz Strait and U.S Naval protection was effective. However, the jump upwards again on late Friday in the commodity showed sentiment remains cautious. Day traders need to understand emotions are causing price flashes in WTI Crude Oil and this is not going to change anytime soon.
Why Labor Day Trading Could Intensify WTI Volatility
Traders who are tempted to stay out of WTI Crude Oil on late Monday and early Tuesday may be making a wise move. Trying to predict how WTI will open based on the amount of trading volume that will occur and how it will increase into Tuesday is a dangerous problem. Momentum in WTI Crude Oil has certainly kept the price higher, the question is if nervous tensions will continue over the next 24 hours and which direction the market turns when holiday volumes turn into full action.
WTI Crude Oil Short Term Outlook:
Current Resistance: 92.200
Current Support: 91.300
High Target: 95.500
Low Target: 89.200
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