Crude Oil Price Forecast – August 20, 2024

Tag: Price Forecasting

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

WTI crude oil settled below the 62 percent retracement of the rise from $70.88 and the intermediate (1.382) target of the first wave down from $78.54. This was bearish for the outlook because the close below the 62 percent retracement implies that the move up from $70.88 is a completed correction and has increased the likelihood that a long-term bearish decision point at $71.2 will be tested again.

The 78 percent retracement and larger than (1.618) target around $72.6 were tested and held on a closing basis today. Another test of $72.6 is expected within the next day or so. Closing below $72.6 will call for a minor target at $71.8 that connects to the long-term bearish decision point at $71.2. The $71.2 objective is most important because it is the smaller than (0.618) target of the wave down from the $84.32 October contract high, the equal to (1.00) target of the wave down from $83.45, the smaller than target of the wave down from $82.62, and the 62 percent retracement of the rise from $64.38. A sustained close below $71.2 will open the potential for a decline into the mid-to-low $60s in the coming months.

Nevertheless, the confluence of $72.6 makes this a level from which a test of resistance might take place before the move down extends and tests $71.2. Today’s long upper and lower candlestick shadows also reflect a bit of near-term uncertainty. A further move up from $72.54 will likely be a correction and is expected to hold key near-term resistance at $74.8. Overcoming $74.2 will call for a test of $74.8. Settling above $74.8 would warn that the move down from $78.54 is failing.

Gold Technical Analysis and Near-Term Outlook

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December gold has been trading in a range between approximately $2400 and $2430 since mid-July. Prices are trading near the top of the range and a break higher out of the range is ultimately expected.

Gold will need to close above key resistance at $2530 to confirm that a break higher is finally underway. Such a move will open the way for $2560 and $2581. Overcoming the $2514 smaller than (0.618) target of the wave up from $2349.8 will clear the way for a test of $2530 within the next few days.

The pullback from $2519.7 looks like a correction based on today’s trading. However, the move down took out the smaller than (0.618) target of the wave down from $2519.7 and should test the $2464 equal to (1.00) target first. The move up from $2469.2 also held the 62 percent retracement of the decline from $2519.7 at $2500.

Closing below $2464 now looks as though it will be a challenge but would call for a test of key near-term support at $2447. This is the intermediate (1.382) target of the wave down from $2519.7, the smaller than target of the wave down from $2522.5, and the 62 percent retracement of the rise from $2403.8. Settling below this would put the near-term odds in favor of gold falling to test the $2401 equal to (1.00) target of the wave down from $2522.5.

Natural Gas Technical Analysis and Near-Term Outlook

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September natural gas continues to show signs of a bullish recovery. A weekly bullish KCDpeak (oversold signal) and weekly bullish KasePO, RSI, and MACD divergences suggest a bottom has been made. The 10-day DMI and daily Kase Trend indicators are also bullish. Furthermore, today’s move up shook off a series of bearish daily candlesticks that had formed during the past several days.

The move up is struggling to settle above the 89 percent retracement from $2.302 and equal to (1.00) target of the subwave up from $1.882 at $2.27. However, today’s rise has put natural gas in a position to re-challenge and overcome $2.27 within the next day or so. Closing above $2.27 will call for a minor target at $2.33 and then a test of the next major objective at $2.37. The $2.37 objective is in line with the intermediate (1.382) target of the subwave up from $1.882, the smaller than (0.618) target of the primary wave up from $1.882, and the 38 percent retracement of the decline from $3.193. Settling above $2.37 for a few days will provide more evidence that a sustainable bullish reversal is underway.

That said, natural gas bulls are not completely out of the woods yet. The resilience of $2.27 resistance and late pullback from $2.276 warns that another test of support might take place. Taking out $2.16 will call for a test of key near-term support at $2.13. This is the 38 percent retracement of the rise from $1.882. The $2.13 level is also in line with the $2.134 corrective swing low of the primary wave up from $1.882 which projects to $2.37 and higher. Closing below $2.13 will not confirm that the move up has failed but would call for $2.08 and then a test of a bearish decision point at $2.02.

WTI Crude Oil Technical Analysis and Short-Term Forecast

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WTI crude oil rallied on Monday and overcame the $78.88 swing high and settled above the 62 percent retracement of the decline from $83.58 and the bullish threshold of the daily Kase Trend indicator. This was bullish for the outlook of WTI crude oil in the coming weeks. However, the $80.2 XC (2.764) projection of the first wave up from $71.67 held and a small intra-day double top formed around $80.16. The double top was confirmed and prices settled below the pattern’s $78.5 target, Monday’s midpoint, and the 21 percent retracement of the rise from $71.67 on Tuesday.

The pullback from $80.16 is likely a correction. However, the wave down from $80.16 is poised to test its $77.8 XC (2.764) projection early Wednesday. Falling below $77.8 will call for a test of key support at $76.9. This is in line with Monday’s open and the 38 percent retracement of the rise from $71.67. Based on the current wave formation down from $80.16, settling below $76.9 is doubtful. Such a move would warn that the move up is failing again.

Should $77.8 hold and prices rise above Tuesday’s $79.0 midpoint, which is also currently the 38 percent retracement from $80.16, look for another test of $80.2. Closing above $80.2 will confirm a bullish outlook for the coming days and clear the way for the $81.1 smaller than (0.618) target of the wave up from $69.16 to be challenged.

Gold Technical Analysis and Near-Term Outlook

This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.

December gold rose to challenge resistance at $2465 today. This level is in line with the equal to (1.00) target of the wave up from $2403.8 and the 50 percent retracement from $2522.5. The move up could still prove to be a correction given the wave down from $2537.7 favors a test of its $2386 equal to target. However, today’s move up confirmed Wednesday’s morning star. Therefore, tomorrow’s outlook is bullish.

The next major objective is $2477. This target is split between the 62 percent retracement from $2537.7 and the smaller than (0.618) target of the wave up from $2398.2. Settling above $2477 would suggest that the move down is complete and open the way for another test of the $2514 smaller than target of the wave up from $2349.8 and then the $2528 equal to target of the wave up from $2398.2.

Should the $2465 level continue to hold look for initial support at $2442. Falling below this would call for a test of $2428 and possibly key near-term support at $2405. Closing below $2405 would shift the near-term odds back in favor of fulfilling the $2386 equal to target of the wave down from $2537.7.

Natural Gas Technical Analysis and Near-Term Outlook

This is a brief analysis for the next day or so. Our weekly Natural Gas Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key natural gas futures contracts, calendar spreads, the UNG ETF, and several electricity contracts. If you are interested in learning more, please sign up for a complimentary four-week trial.

Natural gas continued to rise as called for in Tuesday’s update and confirmed Friday’s morning star setup and Monday’s hammer. Daily bullish KaseCD, RSI, and Stochastic divergences were also confirmed. These patterns and signals call for a larger test of resistance and warn that a bullish reversal may be underway.

The move up is now poised to challenge a highly confluent and key target at $2.16. This objective is split around the XC (2.764) projection of the wave up from $1.882, the 62 percent retracement from $2.302, and the 21 percent retracement from $3.193. The $2.16 target also sits above the $2.149 swing high and is in line with the bullish threshold of the daily Kase Trend indicator. Settling above $2.16 might be a challenge without another test of support first but would open the way for $2.19, $2.24, and $2.28 in the coming days.

Nevertheless, the move up could still prove to be another simple correction. This is because the waves down from $3.570 and $2.302 still favor a test of $1.83. Should natural gas turn lower before overcoming $2.16 look for support at $2.07 and $2.03. Falling below $2.03 will call for a test of key near-term support at $1.97.

Gold Technical Analysis and Near-Term Outlook

This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.

December gold held the 78 percent retracement of the decline from $2537.7 at $2507 before pulling back. Prior intra-day swing lows have held and the wave formation up from $2349.8 is still in a position to test $2514 smaller than (0.618) target of the primary wave up from $2349.8. Therefore, the near-term outlook leans bullish. Settling above $2514 will call for targets at $2529, $2548, $2564, and an eventual push to fulfill this wave’s $2586 equal to (1.00) target.

That said, the pullback from $2506.6 warns that a test of the 38 percent retracement of the rise from $2398.2 at $2465 might take place first. Taking out $2465 would call for the 62 percent retracement at $2440 and possibly a test of key near-term support at $2421. The $2421 level is the smaller than target of the wave down from $2537.7. Therefore, settling below this would shift the odds in favor of an eventual test of this wave’s $2369 equal to target.

Natural Gas Technical Analysis and Near-Term Outlook

This is a brief analysis for the next day or so. Our weekly Natural Gas Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key natural gas futures contracts, calendar spreads, the UNG ETF, and several electricity contracts. If you are interested in learning more, please sign up for a complimentary four-week trial.

September natural gas retains a bearish outlook and is poised to challenge the psychologically important $2.00 level and likely a confluent $1.97 objective within the next day or so. The $1.97 objective is the XC (2.764) projection of the first wave down from $3.193, the smaller than (0.618) target of the wave down from $2.302, and the equal to (1.00) target of the most recent wave down from $2.149. This is another potential stalling point given its confluence and proximity to the $2.00 level. However, any move up from $1.97 will likely be a correction without a significant and lasting bullish shift in the underlying fundamentals.

Settling below $1.97 will open the way for $1.90 and eventually the next major objective at $1.83. The $1.83 objective is the equal to target of the waves down from $2.302 and $3.570. This objective is also near the continuation chart’s recent $1.856 swing low, which was in line with the 78 percent retracement of the rise from $1.481.

Should natural gas prices rise before taking out $2.00 look for initial resistance at $2.07 and then $2.12. The $2.12 level is the smaller than target of the current wave up from $1.991. Overcoming this would call for a test of the equal to target and key near-term resistance at $2.18. The $2.18 level is also the 62 percent retracement of the decline from $2.302, so settling above this would call for a more substantial test of resistance before the move down extends.

WTI Crude Oil Technical Analysis and Short-Term Forecast

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.

The outlook for WTI crude oil is bearish for the coming weeks. The September contract settled below the smaller than (0.618) target of the wave down from $84.36 and the 62 percent retracement of the rise from $72.23 on Monday. This implies that the move up from $72.23 is complete and the wave down from $84.36 now favors an eventual test of its $71.5 equal to (1.00) target.

Today, prices fell to challenge the $74.7 smaller than target of the wave down from $82.27 and the 78 percent retracement of the rise from $72.23. The $74.7 target held on a closing basis, so there is a modest chance for a test of resistance tomorrow. However, there are no bullish patterns or confirmed technical signals that call for a reversal. Therefore, near-term odds favor a test of $74.3, a close below which will call for $73.7, $73.2, and the next confluent target at $72.3 in the coming days.

Should prices rise tomorrow look for initial resistance at $75.5 and then $76.0. The $76.0 level is expected to hold. Key resistance for the near term is $76.6. This threshold is in line with the 21 percent retracement from $83.58 and the 200-day moving average. Settling above $76.6 would shift the near-term odds in favor of WTI crude oil rising to challenge $77.0 and higher.

Gold Technical Analysis and Near-Term Outlook

This is a brief analysis for the next day or so. Our weekly Metals Commentary and daily updates are much more detailed and thorough energy price forecasts that cover key COMEX precious metals futures contracts and LME Non-Ferrous (Base) metals, spot gold, the gold/silver ratio, and gold ETFs. If you are interested in learning more, please sign up for a complimentary four-week trial.

Gold settled below the smaller than (0.618) target of the primary wave down from $2488.4 and the 62 percent retracement of the rise from $2304.2 today. Today’s move down also caused the daily Kase Trend indicator to become bearish and for the 10-day DMI to trigger a bearish crossover. Daily bearish KasePO and RSI divergences were also confirmed at the $2488.4 swing high and there has been good follow-through after last week’s formation of a shooting star.

The move down is now poised to reach the $2328 equal to (1.00) target of the wave down from $2488.4. Settling below this will call for another test of the $2304 level, a close below which would call for the $2290 intermediate (1.382) target and eventually the $2263 larger than (1.618) target. The $2263 objective is also a major retracement of the moves up from $1900.1 and $2306.

There are no bullish patterns or signals that call for the move down to stall before reaching $2328. Nonetheless, should gold rise tomorrow look for initial resistance at $2372 to hold. Overcoming this would call for key near-term resistance and the 38 percent retracement of the decline from $2488.4 at $2402 to be challenged.