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WTI Crude Oil produces respectable range in June

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WTI Crude Oil produces respectable range in June

After a few months of wild fluctuations, West Texas Intermediate (WTI) generated a calm range last month, giving speculators the chance to breathe and not actually worry about the sky falling.

However, WTI Crude Oil is not out of the woods yet as it still has shadows looming on the horizon when it comes to its value. However, it cannot be denied that June offered a range that gave traders the chance to test normal ranges and produce positive perceptions regarding trends.

June generated a price range that usually came between 34.00 and 40.00 US Dollars a barrel. The commodity seems to be going to the month of July with sufficient backers to back a normal trading range as well. Questions of supply and demand still are distressing elements within WTI Crude Oil. However, a foundation has already been put in place that lets speculators take positions in a manner that permits them to get some breathing space and not worry about a repeat of the death spiral that manifested in April, causing professional and retail traders to quake in their boots.

Since the middle of June, there had been a relative strong level of support near $37 but the question remains: will it hold? Considering the roller coaster ride in the last few months, it appears unlikely that traders can purchase WTI Crude Oil and feel comfortable with $37 as a support ratio. However, traders need to utilize risk management and the question remains if there is enough room to speculate on more value for the commodity as the summer rolls around.

WTI Crude Oil maintains its standing as a crucial barometer of risk appetite in the world market. Oil firms in the United States are under immense pressure economically and rumors are aplenty involving bankruptcies coming from the energy sector on a moderately consistent basis. However, even as demand for the commodity remains problematic and its higher values from earlier this year look unachievable, WTI Crude Oil has actually managed to test a gap higher in late June which was produced when the energy sector began to display signs of trouble in early March.

WTI Crude Oil remains an extremely speculative trade and upwards value needs to be justified. Although the commodity has certainly generated a dynamic shift upwards in the last few months with higher prices, problems still are volatile. Technically, resistance has been seen around 42.00 USD and it seems to be an inflection point. If this value can be moved upwards and WTI Crude Oil can maintain prices above this point, it would be rather surprising.

However, the commodity was able to prove doubters wrong in June and it was able to shatter resistance and keep higher values. Again, it is crucial to take note that the price of an asset in the market is the correct price no matter what your technical or fundamental knowledge is saying. Betting against an asset because you ‘know’ it is not valued correctly often results in terrible mistakes by traders as they let their emotions and logic get in the way of the marketplace which, for all intents and purposes, does not care what you think.

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| AD | 80.5% of retail CFD accounts lose money.

| AD | 80.5% of retail CFD accounts lose money.

WTI Crude Oil produces respectable range in June
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