WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil rose as called for today and settled just below the $73.4 target. This is the highest that the wave up from $70.43 projects and the 62 percent retracement of the decline from $75.18. The outlook remains bullish for tomorrow and a test of the 38 percent retracement of the decline from $79.39 at $73.9 is expected. Settling above this will warn that a bullish reversal is underway.
However, the wave formation up from $70.43 is due for a correction given $73.4 is the highest that the wave up from $70.43 projects. A bearish KaseCD divergence and KasePO PeakOut (overbought signal) were also confirmed on the $0.35 Kase Bar chart at the $73.68 swing high. Therefore, there is a good chance for a test of support first.
Should WTI crude oil take out the $72.9 smaller than (0.618) target of the wave down from $73.68 look for a test of $72.5. This is the equal to (1.00) target, the 38 percent retracement of the rise from $70.43, and is in line with today’s open. A simple correction of the move up from $70.43 should hold $72.5. Falling below $72.5 will call for a test of key near-term support at $72.1. This is the larger than (1.618) target and 50 percent retracement.
