December WTI broke the recent and crucial $79.1 swing low when prices fell to a $78.14 intraday low on Monday. This was the 1.00 projection for the two largest waves down from $106.81 (Wave A) and $103.66 (Wave A’/C). WTI is now poised for at least $73.9 and possibly $69.8, which are the next targets for these waves. Look for near-term resistance at $79.8, $83.0, and $84.8.
For more information about this call, the importance of these targets (and others), and the technical factors driving prices lower, take a trial of Kase’s weekly energy forecasts.
December RBOB futures met confluent support at $2.0776, and prices have subsequently settled into a coil formation that should break lower. However, a KasePO PeakOut (green P), indicates the move down is oversold and due for a correction. A directional break out of the coil will help to clarify the near term direction. Upon a break lower, look for $2.041 and then $1.915. Should the upward correction extend, watch for resistance at $2.240 and $2.368. The latter is expected to hold.
For more information and to take a trial of Kase’s weekly energy forecasts please visit the Energy Price Forecasts page.
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