WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil rose to test $78.3 as called for but held the 100-day moving average, which is now $78.4. The near-term outlook remains bullish because of a sustained close above crucial resistance at $77.6 for the past couple of days. However, today’s lackluster follow-through after Monday’s rally dampens the odds for a continued rise tomorrow and warns that a test of support might take place first.
Closing above $78.4 will open the way for a test of $79.3 and then $80.0. Settling above $80.0 will call for the 62 percent retracement of the decline from $86.16 at $80.9 to be challenged.
The intra-day wave structure up from $72.48 is also due for a test of support, so this also suggests that a correction might take place before the move up extends. Taking out initial support at $77.1 will call for a test of Monday’s $76.5 midpoint. Falling below $76.5 would call for a test of key near-term support at $75.4. Settling below $75.4 would imply that the move up is failing.
