WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil has developed a bullish outlook in recent weeks. Last week’s close above the $63.9 smaller than (0.618) target of the primary wave up from $63.73 implies that prices should eventually reach this wave’s $78.7 equal to (1.00) target.
For the near term, WTI crude oil shook off Monday’s pullback. Support at $73.0, near the 21 percent retracement of the rise from $66.01, held and prices settled just below the 62 percent retracement of the decline from $74.99. Today’s rise has put WTI crude oil in a position to challenge $74.8 again. Settling above this will take out the intermediate (1.382) target of the wave up from $66.01. This will clear the way for a test of $75.4 and then the respective $76.0 and $76.7 larger than (1.618) target of the wave up from $66.01 and the first wave up from $63.73.
Nevertheless, there is still a modest chance for a deeper test of support soon given the daily KasePO and Slow Stochastic are overbought. Should the move up stall again and close below the $73.4 smaller than target of the wave down from $74.99 look for a test of the equal to (1.00) target and 200-day moving average at $72.7. Settling below $72.7 will shift the near-term odds in favor of testing the 38 percent retracement of the rise from $66.01 at $71.6 before the move up extends.
