WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil overcame the $80.11 swing high and settled above the 62 percent retracement of the decline from $85.27. The daily Kase Trend indicator is bullish, the 10-day DMI and ADX reflect increasing bullish sentiment, and prices are trading above all major daily moving averages. These factors confirm a bullish reversal and trend.
The move up is now poised to test the $81.4 smaller than (0.618) target of the largest wave up from $72.44. Closing above this will call for a longer-term bullish decision point at $82.4, which is the smaller than target of the wave up from $69.22, to be challenged.
The move up is due for a correction. Overbought daily KaseCD and Stochastic oscillators warn that such a move might take place soon. Even so, there are no bearish patterns or confirmed signals that call for the move up to stall. Furthermore, any move down will likely be a correction.
Should prices turn lower tomorrow, look for initial support at $79.9 and key near-term support at $79.0. Settling below $79.0 will call for a deeper test of support where $77.6 is most important.
