WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil tested and held the $77.3 equal to (1.00) target of the primary wave down $80.85 on a closing basis again today. The $77.3 objective is also the equal to target of the wave down from $80.67 and the 38 percent retracement of the rise from $71.49. This has become an important target because closing below $77.3 would imply that the move down from $80.85 is more than a simple correction. Near-term odds still favor such a move, which will open the way for a test of the $76.2 intermediate (1.382) and possibly the $75.4 larger than (1.618) targets of the wave down from $80.85 in the coming days.
Nevertheless, another daily long-legged doji reflects uncertainty and warns that the corrective pullback from $80.85 might be complete. Settling above $79.3, the equal to target of the wave up from $76.79 and 62 percent retracement of the decline from $80.85, would strongly suggest this is the case. Closing above $79.9, the smaller than (0.618) target of the wave up from $75.84 and intermediate target of the wave up from $76.79, would confirm this is the case and put near-term odds in favor of $80.4 and higher.
