WTI Crude Oil Technical Analysis and Short-Term Forecast
WTI crude oil broke higher out of an intra-day coil pattern and settled above the $62.43 swing high. This confirmed the double bottom between the $60.61 and $60.66 swing lows that formed Monday. The move up is now positioned to challenge a bullish decision point at $63.5 early tomorrow. This is the larger than (1.618) target of the wave up from $60.61, the 78 percent retracement of the decline from $64.38, and most importantly, the 62 percent retracement of the decline from $67.29. Closing above $63.5 would imply that the corrective move down from $67.29 is complete, clearing the way for a test of the double bottom’s $64.2 target. This then connects to $64.9 and higher.
Nevertheless, when WTI rose to $64.38 just over a week ago $63.5 held on a closing basis. This has been a strong level of resistance and is still a highly confluent wave projection and retracement. Should WTI hold $63.5 look for a test of $62.3 and possibly $61.7. Support at $61.7 is expected to hold. Closing below this would reflect a bearish shift in near-term sentiment and call for a test of $59.8 and possibly lower.
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.
