WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil’s move down accelerated again today and settled below a highly confluent and important $66.5 target. The move down is now poised to test $64.6 and then the next major target at $63.7. The $63.7 objective is another bearish decision point because it is the equal to (1.00) target of the wave down from the $84.32 October contract high and the larger than (1.618) target of the wave down from $83.45. Once prices fall to $63.7 the daily RSI and KasePO should be oversold. Therefore, $63.7 is a target from which a solid test of resistance could take place. Given the current wave structure, a sustained close below $63.7 would be quite bearish for the coming months because the next major target is $55.9.
The move down is due for a correction but there are no bullish patterns or signals that call for the move down to stall. The small move up at the end of today was likely profit-taking but suggests that a test of $66.7 and possibly today’s $67.4 midpoint might take place first. The $67.4 level is expected to hold. Key resistance for tomorrow is in line with today’s open at $68.8.
