WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil fell to test the 62 percent retracement of the rise from $64.61 at $69.9 and nearly fulfilled the $69.3 equal to (1.00) target of the wave down from $78.46. Both targets held on a closing basis and the move up from $69.71 formed a wave that should challenge at least $71.2 and possibly its $72.1 larger than (1.618) target first.
The move up is likely a correction though. The near-term outlook remains bearish and another test of $69.9 and likely $69.3 is expected. Settling below $69.3 will confirm a bearish outlook and strongly suggests that the move up from $64.61 is complete. This will also clear open the way for a test of $67.7 and then the $66.8 intermediate (1.382) target of the wave down from $78.46 in the coming days.
That said, oversold RSI and KasePO PeakOut signals on the $0.65 Kase Bar chart warn that the test of resistance could lead to a bullish reversal. Overcoming $72.1 would call for a test of key near-term resistance at $73.1. A normal correction of the move down will hold $73.1 because this is the 38 percent retracement of the decline from $78.46. Closing above this would shift the near-term odds in favor of challenging $73.9 and possibly the 62 percent retracement at $75.1.
