WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil settled below the 62 percent retracement of the rise from $66.72 and the 20- and 50-day moving averages on Monday. The move down is poised to challenge the $67.3 smaller than (0.618) target of the wave down from $80.95. Taking out a minor target at $67.8 early tomorrow will clear the way for a test of $67.3. Settling below $67.3 will confirm a bearish outlook and call for the $66.1 smaller than target of the wave down from $77.7 to be challenged within the next few days.
That said, today’s long-legged doji reflects a bit of near-term uncertainty and warns that a test of Monday’s $69.2 midpoint might take place first. Closing above $69.2 will complete the long-legged doji and settling above $70.3 will confirm the pattern. This would warn that the move down is failing again and call for a test of key near-term resistance and the smaller than target of the wave up from $66.72 at $71.7.
