WTI Crude Oil Price Forecast: Prepare for Next Weeks Breakout Now
- Crude Oil Prices Consolidate With an Inside Bar
- Traders May Plan for a Bullish Breakout in Crude Oil Over $47.71
- If you are looking for trading ideas for Crude Oil and other commodities, check out our Trading Guides.
The price of WTI Crude Oil (CFD: USOil), is pulling back off of weekly highs after yesterday’s trading saw Crude Oil reach a peak of $47.71. With today’s price action failing to breakout to new highs, technically this suggests that that Crude Oil prices might close the week with the creation of an inside bar. Knowing this, traders should continue to monitor the current weekly high will as a point of resistance for next week’s trading. Alternatively, Thursday’s low should also be considered a point of support for Crude Oil at a price of $45.74.
As Crude Oil prices consolidate between these values of support or resistance, traders may plan to trade either one of two scenarios. First, traders may elect to trade further consolidation next week if Crude Oil continues to trade in its $2.03 range. This strategy may be considered valid until price action breaks out either above $47.71 or below $45.74. The second opportunity traders may look for is a breakout from the identified trading range. In this scenario, traders may elect to extrapolate a 1X extension of the $2.03 range to find preliminary pricing targets. This places primary bullish breakout targets near $49.74, and bearish targets near $43.71.
Crude Oil Price, Daily Chart & Inside Bar
(Created by Walker England)
The ratio of long to short positions for Crude Oil (CFD: USOil) stands at -1.19. This SSI (speculative sentiment index) reading shows that 54% of positioning is currently short WTI Crude Oil. Typically when SSI reads negative, this suggests that prices may continue to rise. In the event of a bullish breakout, traders should look for SSI to move towards new negative extremes. Alternatively if prices breakout lower, SSI may flip to a positive reading.
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