WTI Crude Oil Technical Analysis and Short-Term Forecast
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June WTI crude oil retested the $81.0 target of a confirmed double top that formed around $86.9 today. This has been resilient support for the past few days and held on a closing basis again. The wave up from $80.7 extended and settled the day above its equal to (1.00) target and the 38 percent retracement of the decline from $86.97. WTI also settled just below the $83.5 completion point of bullish daily hammers and an inverted hammer that formed Thursday, Friday, and Monday. The wave up from $80.7 is now poised to overcome $83.5 to fulfill its $84.0 intermediate (1.382) target and possibly the $84.7 larger than (1.618) target. The $84.7 target is most important because it is also in line with the 62 percent retracement from $86.97 and the confirmation point of the bullish daily candlesticks. Settling above $84.7 will strongly imply that the corrective pullback from $86.97 is complete and that WTI crude oil will work its way to a new uptrend high in the coming days.
Today’s rise was bullish for the near-term outlook. However, while the $85.64 swing high holds the wave down from $86.97 still has potential to extend to its $79.7 equal to (1.00) target. This is because this wave took out its smaller than (0.618) target a few days ago. Should prices turn lower early tomorrow look for initial support at $82.4. Falling below this will call for $81.7 and possibly another attempt to take out key support at $81.0. Settling below $81.0 will clear the way for the $79.7 threshold to be fulfilled.
