WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil gapped lower from $69.96 on Monday and settled below the $67.3 smaller than (0.618) target of the wave down from $80.95 on Tuesday. The 78 percent retracement of the rise from $64.16 has held on a closing basis for the past two days. Even so, the gap down and close below $67.3 reflect bearish sentiment for the coming days and perhaps weeks.
The move down is now poised to test the $66.3 intermediate (1.382) target of the first wave down from $77.7. This is also the smaller than target of the compound wave $77.7 – $68.17 – $72.34. Settling below $66.3 will open the way for a test of $66.6 and then the $64.6 larger than (1.618) target of the first wave down from $77.7.
There are no daily bullish patterns or signals that call for the move down to stall. Nonetheless, the daily Stochastic is nearing oversold territory and a confirmed bullish KasePO divergence and long warning signal on the $0.35 intra-day Kase Bar chart warn that a test of $68.3 might take place first. Overcoming $68.3 would call for a test of $69.0, which is expected to hold. Key resistance for the near term is the top of Monday’s gap down on the daily chart at $70.0. Settling above $70.0 would reflect a bullish shift in near-term sentiment.
