WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil tested and held major support and a bearish decision point for the coming months at $71.5 on Monday. This is an area where the move down could stall and a bullish reversal occurs. However, the move up from $71.67 has been shallow and choppy so far and looks like a simple correction.
Today’s candlestick reflects a bit of near-term uncertainty, but the outlook continues to lean bearish for WTI crude oil. Taking out the $72.5 smaller than (0.618) target of the wave down from $74.56 will call for another test and attempt to close below $71.5. Settling below $71.5 will open the way for tests of $70.7 and then another confluent and psychologically important target at $70.1 in the coming days.
Nevertheless, there is still a reasonable chance for a larger test of resistance first. Should WTI crude oil overcome the $74.0 smaller than target of the waves up from $71.67 and $72.2 look for a test of $74.7 and key near-term resistance at $75.2. Settling above $75.2 would call for an extended correction to challenge $76.1 and possibly higher.
