Crude oil price outlook 2023 and its recent behavior as well as the cautious response of retail traders and the concept of using IG Client Sentiment (IGCS) as a contrarian indicator to gauge market sentiment.
Crude Oil Price Outlook 2023 Rise Amidst Retail Trader Caution
According to the published article of Daily FX, over the past 24 hours, crude oil price outlook 2023 have continued their upward trajectory, building on the recent winning streak that began last week. Interestingly, retail traders have responded with a sense of caution in the context of the crude oil price outlook 2023, opting to increase their bets against the rising trend. This shift in sentiment can be observed through IG Client Sentiment (IGCS), which can sometimes act as a counter indicator. The delicate balance between bullish and bearish exposure suggests a potential turning point in the near-term as we consider the crude oil price outlook 2023.
IGCS data indicates that approximately 50% of retail traders are currently holding long positions in crude oil. The near-even split between those betting on further gains and those anticipating declines provides insight into the evolving sentiment that could influence price movements.
Recent shifts in positioning reveal a nearly +3% rise in downside exposure compared to the previous day, and a significant +6% increase from the previous week. This adjustment hints at a potential shift in the price trend towards the upside as we consider the crude oil price outlook 2023.
As depicted on the daily chart indicated in the article of IG, WTI crude oil has advanced to the 81.56 resistance level, which was established earlier in August, giving us more insights into the crude oil price outlook 2023. Should this hurdle be overcome, as the positioning data suggests, the path could be paved for a retest of the August peak at 84.84.
Such a move would also challenge the validity of the earlier breakout beneath the rising trendline from late June.