WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil settled below the $81.4 smaller than (0.618) target of the wave down from $84.52 and the 20-day moving average today. The move down is likely a correction but is now poised to test at least $80.0. This is the equal to (1.00) target of the wave down from $84.52 and 38 percent retracement of the rise from $72.44. A normal correction will hold $80.0, so settling below this objective may prove to be a challenge. Nonetheless, a sustained close below $80.0 will open the way for $79.5, $79.1, and then another major target at $78.6.
There are no bullish patterns or signals that call for the move down to fail before reaching $80.0. Even so, the move up from today’s $80.22 low could extend to test today’s $81.3 midpoint first. This level will likely hold. Overcoming $81.3 would call for WTI crude oil to test of key near-term resistance at $81.9. This is in line with today’s open and the 38 percent retracement of the decline from $84.52. Settling above $81.9 would warn that the move down is failing and shift the near-term odds in favor of WTI crude oil rising to challenge $82.4 and possibly the 62 percent retracement at $82.9.
