WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil rallied on Monday and overcame the $78.88 swing high and settled above the 62 percent retracement of the decline from $83.58 and the bullish threshold of the daily Kase Trend indicator. This was bullish for the outlook of WTI crude oil in the coming weeks. However, the $80.2 XC (2.764) projection of the first wave up from $71.67 held and a small intra-day double top formed around $80.16. The double top was confirmed and prices settled below the pattern’s $78.5 target, Monday’s midpoint, and the 21 percent retracement of the rise from $71.67 on Tuesday.
The pullback from $80.16 is likely a correction. However, the wave down from $80.16 is poised to test its $77.8 XC (2.764) projection early Wednesday. Falling below $77.8 will call for a test of key support at $76.9. This is in line with Monday’s open and the 38 percent retracement of the rise from $71.67. Based on the current wave formation down from $80.16, settling below $76.9 is doubtful. Such a move would warn that the move up is failing again.
Should $77.8 hold and prices rise above Tuesday’s $79.0 midpoint, which is also currently the 38 percent retracement from $80.16, look for another test of $80.2. Closing above $80.2 will confirm a bullish outlook for the coming days and clear the way for the $81.1 smaller than (0.618) target of the wave up from $69.16 to be challenged.
