WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil continued to rise on Tuesday as called for in Monday’s update and settled above the 20- and 50-day moving averages. The 38 percent retracement of the decline from $77.7 at $71.8 held on a closing basis. Even so, the move up during the past two days reflects a bullish shift in near-term sentiment and warns that another significant test of resistance is underway.
The intra-day wave formation up from $68.17 calls for a test of 72.4 and possibly the 50 percent retracement at $72.9. Settling above $72.9 will call for major resistance at $74.2 to be challenged in the coming days. This is the 62 percent retracement and 200-day moving average. Settling above $74.2 will imply that the move down from $77.7 is complete.
That said, a normal correction will continue to hold $71.8. A bearish KasePO divergence and short warning entry signal on the $0.35 Kase Bar chart also warn that the move up from $68.17 might be complete. However, to confirm this, prices will have to settle below the 62 percent retracement of the rise from $68.17 at $69.7.
