WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

Tomorrow’s outlook for January WTI crude oil leans bullish given Monday’s bullish engulfing line. One could also make a case for a double bottom between the $66.32 and $66.53 swing lows. However, the longer-term outlook for WTI crude oil remains bearish and the move up from $66.53 is likely another correction. Furthermore, this is a tight call for tomorrow given today’s lackluster move up and the formation of an intra-day head and shoulders pattern.

The key for a larger test of resistance is an early move above the $69.8 smaller than (0.618) target of the wave up from $68.48. Such a move would negate the head and shoulders pattern and call for a test of this wave’s $70.3 equal to (1.00) target. The $70.3 objective is crucial because it is also the smaller than target of the waves up from $66.32 and $66.53. Closing above $70.3 would call for the $71.3 equal to target of the wave up from $66.53 and then a test of the $72.5 equal to target of the wave up from $66.32. The $72.5 objective is in line with the $72.41 confirmation point of the debatable $66.32/$66.53 double bottom.

That said, falling below $68.5 before rising to $69.8 would confirm the intra-day head and shoulders pattern. Below $68.5 look for support at $67.8. This is the intermediate (1.382) target of the wave down from $69.74 and the 62 percent retracement of the rise from $66.53. Closing below $67.8 would strongly suggest that the move up from $66.53 is a completed correction. Settling below $67.3, which is in line with this wave’s larger than (1.618) target and the target of the head and shoulders, would confirm a bearish outlook for the coming days.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

WTI crude oil settled below the 62 percent retracement of the rise from $66.72 and the 20- and 50-day moving averages on Monday. The move down is poised to challenge the $67.3 smaller than (0.618) target of the wave down from $80.95. Taking out a minor target at $67.8 early tomorrow will clear the way for a test of $67.3. Settling below $67.3 will confirm a bearish outlook and call for the $66.1 smaller than target of the wave down from $77.7 to be challenged within the next few days.

That said, today’s long-legged doji reflects a bit of near-term uncertainty and warns that a test of Monday’s $69.2 midpoint might take place first. Closing above $69.2 will complete the long-legged doji and settling above $70.3 will confirm the pattern. This would warn that the move down is failing again and call for a test of key near-term resistance and the smaller than target of the wave up from $66.72 at $71.7.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

WTI crude oil gapped lower from $69.96 on Monday and settled below the $67.3 smaller than (0.618) target of the wave down from $80.95 on Tuesday. The 78 percent retracement of the rise from $64.16 has held on a closing basis for the past two days. Even so, the gap down and close below $67.3 reflect bearish sentiment for the coming days and perhaps weeks.

The move down is now poised to test the $66.3 intermediate (1.382) target of the first wave down from $77.7. This is also the smaller than target of the compound wave $77.7 – $68.17 – $72.34. Settling below $66.3 will open the way for a test of $66.6 and then the $64.6 larger than (1.618) target of the first wave down from $77.7.

There are no daily bullish patterns or signals that call for the move down to stall. Nonetheless, the daily Stochastic is nearing oversold territory and a confirmed bullish KasePO divergence and long warning signal on the $0.35 intra-day Kase Bar chart warn that a test of $68.3 might take place first. Overcoming $68.3 would call for a test of $69.0, which is expected to hold. Key resistance for the near term is the top of Monday’s gap down on the daily chart at $70.0. Settling above $70.0 would reflect a bullish shift in near-term sentiment.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

WTI crude oil continued to rise on Tuesday as called for in Monday’s update and settled above the 20- and 50-day moving averages. The 38 percent retracement of the decline from $77.7 at $71.8 held on a closing basis. Even so, the move up during the past two days reflects a bullish shift in near-term sentiment and warns that another significant test of resistance is underway.

The intra-day wave formation up from $68.17 calls for a test of 72.4 and possibly the 50 percent retracement at $72.9. Settling above $72.9 will call for major resistance at $74.2 to be challenged in the coming days. This is the 62 percent retracement and 200-day moving average. Settling above $74.2 will imply that the move down from $77.7 is complete.

That said, a normal correction will continue to hold $71.8. A bearish KasePO divergence and short warning entry signal on the $0.35 Kase Bar chart also warn that the move up from $68.17 might be complete. However, to confirm this, prices will have to settle below the 62 percent retracement of the rise from $68.17 at $69.7.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

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.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

WTI crude oil has been on a wild ride during the past few weeks. Prices rallied and settled above the 62 percent retracement of the decline from $82.59 and the intermediate (1.382) target of the wave up from $64.61 on Monday. The November contract also overcame an important $77.45 swing high early Tuesday. These factors were bullish for the outlook and implied that WTI crude oil was adopting a much firmer bullish outlook.

However, Tuesday’s early move up stalled at $78.46, just below the 78 percent retracement from $82.59 and the $78.9 larger than (1.618) target of the wave up from $64.61. The subsequent move down from $78.46 formed a daily bearish engulfing line and confirmed a daily Stochastic overbought signal. The 38 percent retracement of the rise from $64.61 held on a closing basis, but the bearish engulfing line calls for a deeper test of support tomorrow and warns that a bearish reversal will continue to unfold.

Another test of $73.2 is expected. Settling below this will indicate that the move down from $78.46 is more than just a simple correction of the rise from $64.61. This will also call for a test of the 50 percent retracement and 50-day moving average at $71.6 and possibly the 62 percent retracement at $69.9 in the coming days. Settling below $69.9 will confirm a bearish reversal and call for the $67.9 smaller than (0.618) target of the new wave down from $81.75 to be challenged.

Tuesday’s decline reflects a shift in sentiment, given that the geopolitical factors that had driven prices higher have not led to supply disruptions. Even so, should geopolitical tensions rise again, prices will likely push to challenge $78.9 and higher.

Should WTI crude oil rise tomorrow and overcome the 38 percent retracement from $78.46 at $74.9 look for a test of the 62 percent retracement at $76.3. Settling above $76.3 would indicate that the move down has failed and put the near-term odds back in favor of challenging $77.8 and $78.9 within the next few days.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

Today’s rally was bullish for WTI crude oil prices in the coming days. The move up overcame the $71.1 smaller than (0.618) target of the wave up from $64.61. This suggests that this wave will eventually extend to its $74.1 equal to (1.00) target. The pullback from $71.94 also held the 38 percent retracement of the rise from $66.33 at $69.8. Another test of $71.1 is anticipated, a close above which will call for targets at $72.6 and $73.3 that connect to the $74.1 objective.

However, this is a tight call. The move up stalled at the 50-day moving average and near the 89 percent retracement of the decline from $72.4. The $72.1 lower trend line of November’s coil pattern that broke lower on September 3 also held and prices are still trading below the lower trend line of a pennant on the continuation chart that broke lower that same day. The pullback from $71.94 was likely profit-taking but serves as a warning that traders may wait on more information before making the next push higher or lower.

To retain a bullish outlook in the coming days WTI crude oil must close above $71.1 and the lower trend lines of November’s coil ($72.1) and the continuation chart’s pennant ($73.3).

Otherwise, should WTI fall below $69.1 look for a test of key near-term support at $68.2. This is the smaller than target of the wave down from $72.4. Settling below this will imply that the move up has failed again and call for a move back below the 62 percent retracement of the rise from $64.61 at $67.6 to fulfill this wave’s $65.9 equal to (1.00) target.

WTI Crude Oil Technical Analysis and Short-Term Forecast

November WTI crude oil briefly rose above the lower trend line of a coil pattern that broke lower on September 3. Prices settled below this trend line but closed above the 38 percent retracement of the decline from $82.59. This target at $71.5 had held on a closing basis for a few days. This was bullish for the outlook and suggests that another test of the coil’s lower trend line at $72.3 will take place tomorrow. There is also a good chance for a test of $72.8, which sits just above the 62 percent retracement of the decline from $77.45.

The $72.8 target is most important because this objective is in line with the lower trend line of a wedge pattern on the continuation chart that broke lower during the week ended September 6. A sustained close above $72.8 will confirm that a bullish reversal is underway.

Settling above $72.8 will also call for a test of the $73.6 confirmation point of a weekly long-legged doji on the continuation chart. The $73.6 target is also November’s 50 percent retracement of the decline from $82.59.

That said, should $72.8 continue to hold there is still a modest chance that the move up is a corrective throwback on the continuation chart. In this scenario, settling below the 38 percent retracement of the rise from $64.61 at $69.4 would warn that the move up is failing and put the near-term odds in favor of testing the respective 50 and 62 percent retracements at $68.5 and $67.6.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

WTI crude oil has recovered after briefly settling below a highly confluent and key wave projection and retracement level at $66.5 on September 10. The close below $66.5 only lasted a day and the subsequent move up from $65.27 has been quite aggressive. A weekly long-legged doji, daily bullish RSI divergence, and daily Stochastic oversold signal suggest a bullish reversal might be underway. However, the challenge is that the move up might be a throwback to test the lower trend line of a coil pattern on the October chart and wedge pattern on the continuation chart, both of which broke lower on September 3.

CLV24 Daily Chart with Coil

For the move down to extend again WTI crude oil must hold the lower trend lines of these patterns, which currently center around $72.5. The $72.5 is also the highest that the first intra-day wave up from $65.27 projects and sits just above the 38 percent retracement of the decline from $83.45. Settling above $72.5 for a few days and extending to close above the 62 percent retracement from $78.54 at $73.5 would imply that the move down is complete.

WTI Crude Oil Weekly Continuation Chart with Wedge

Nevertheless, closing below the 62 percent retracement of the rise from $65.27, which is currently $67.8 (and will be $68.0 should prices rise to and hold $72.5), would suggest that the move up from $65.27 was a throwback and a correction of the downtrend. For the near term, key support is the 38 percent retracement at $69.4. Closing below this tomorrow would put the odds in favor of testing $67.8 in the coming days.