WTI Crude Oil Technical Analysis and Short-Term Forecast
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Today’s rally was bullish for WTI crude oil prices in the coming days. The move up overcame the $71.1 smaller than (0.618) target of the wave up from $64.61. This suggests that this wave will eventually extend to its $74.1 equal to (1.00) target. The pullback from $71.94 also held the 38 percent retracement of the rise from $66.33 at $69.8. Another test of $71.1 is anticipated, a close above which will call for targets at $72.6 and $73.3 that connect to the $74.1 objective.
However, this is a tight call. The move up stalled at the 50-day moving average and near the 89 percent retracement of the decline from $72.4. The $72.1 lower trend line of November’s coil pattern that broke lower on September 3 also held and prices are still trading below the lower trend line of a pennant on the continuation chart that broke lower that same day. The pullback from $71.94 was likely profit-taking but serves as a warning that traders may wait on more information before making the next push higher or lower.
To retain a bullish outlook in the coming days WTI crude oil must close above $71.1 and the lower trend lines of November’s coil ($72.1) and the continuation chart’s pennant ($73.3).
Otherwise, should WTI fall below $69.1 look for a test of key near-term support at $68.2. This is the smaller than target of the wave down from $72.4. Settling below this will imply that the move up has failed again and call for a move back below the 62 percent retracement of the rise from $64.61 at $67.6 to fulfill this wave’s $65.9 equal to (1.00) target.
