WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil shook off Monday’s long-legged doji and is continuing to work its way lower after settling below the equal to (1.00) target of the waves down from the $79.52 May contract high and the $76.57 swing high. The intra-day wave down from $63.90 took out its $59.3 smaller than (0.618) target late this afternoon and is poised to reach at least the $57.7 equal to target tomorrow. This wave makes a connection to $56.1 as the intermediate (1.382) target. This is also the intermediate target of the largest wave down from $76.57. As prices fall toward $56.1 look for the $56.7 intermediate target of the wave down from $78.14 to be fulfilled. Settling below $56.1 will clear the way for the $55.5 larger than (1.618) target of the wave down from $63.90 and the intermediate target of the wave down from $79.52 to be fulfilled.
Today’s decline negated Monday’s long-legged doji, so there are no bullish patterns that call for the move down to stall. Even so, the daily KasePO, KaseCD, RSI, and Stochastic are oversold. The oversold momentum oscillators warn that a test of resistance might occur soon. Any move up will likely be a correction though as the wave formation is now poised to reach the targets in the mid-$50s. Initial resistance is $60.3 and key near-term resistance is $61.2. Settling above $61.2 would shift the near-term odds in favor of a solid correction before the move down extends to fulfill the targets in the mid-$50s as expected.
