WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil settled above the $82.4 smaller than (0.618) target of the primary wave up from $69.22 on Monday. This was bullish for the outlook in the coming weeks because this wave now favors an eventual test of its $88.5 equal to (1.00) target. Furthermore, prior major swing high have been overcome, prices are trading above all major daily moving averages, and daily trend indicators are bullish.
The near-term outlook is also bullish but today’s shooting star warns that a test of support might take place first. The daily Stochastic is overbought and the KaseCD and MACD are set up for daily bearish divergence. Therefore, caution is warranted and the near-term odds for a continued rise have been dampened.
Closing above the $83.9 equal to (1.00) target of the wave up from $72.44 will call for a test of the $84.7 equal to target of the wave up from $77.35. This then connects to the next major objective and confluence point at $86.4.
Any further move down will likely be a correction. Nonetheless, closing below $82.4 will complete the shooting star and settling below $81.5 will confirm the reversal pattern. Settling below $81.5 is doubtful based on the current intra-day wave down from $84.38 though. Such a move would put the near-term odds in favor of testing $80.5 and then the 38 percent retracement of the rise from $72.44 at $79.8.
