Crude Oil Short-Term Forecast – April 17, 2018

Late last week, May WTI crude oil fulfilled the $67.3 smaller than (0.618) target of the wave $57.6 – 66.55 – 61.81. Although prices settled above this on Friday the move up struggled to extend and an evening star setup with two stars formed. This reversal pattern’s $66.2 completion point was challenged Monday and again today, but so far prices have failed to close below $66.2. In addition, bullish intra-day momentum divergences were confirmed at today’s $65.56 swing low and the daily chart formed a pseudo bullish hammer.

WTI Crude Oil - Daily Candlesticks
WTI Crude Oil – Daily Candlesticks

The long-term outlook for WTI crude oil remains bullish, but it is a very tight call for the near-term. Given the most recent near-term factors are positive, look for a test of at least $67.0 and possibly $67.4 tomorrow. A close above the latter would open the way for a new high of $68.3, which then connects to $69.1 and higher.

That said, given the balance between near-term positive and negative technical factors it is too soon to throw in the towel on the likelihood of a larger downward correction before the move up continues. A close below $66.2 will increase odds for such a move but the key near-term level is $65.6. Settling below this would open the way for $65.1, which then connects to $64.5 and lower.

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.

May WTI crude oil’s rise from the recent $61.81 swing low extended again today and is poised to continue. Monday’s bullish piercing pattern was confirmed by settling above Friday’s $63.7 open. There are also no reversal patterns or setups that indicate the move up will end. In addition, the $65.86 swing high fulfilled the smaller than target of the wave $59.91 – 66.55 – 61.81, so any pullback will most likely be corrective of a larger scale move up.

WTI Crude Oil - Daily with Kase StatWare
WTI Crude Oil – Daily with Kase StatWare

Upon a close over $65.9 look for next resistance at $66.5. This was the equal to target of the wave $57.6 – 64.07 – 59.91 and the level at which the move up stalled on March 26. So far, $66.5 has held on a closing basis, so if the move down is going to have any chance of continuing in the near-term $66.5 must hold. A close above this would open the way for at least $67.3 and likely higher.

Because the smaller than target of the wave up from $59.91 was met this afternoon a corrective pullback might take place first. Initial support is $65.0, though a test of today’s $64.4 midpoint would not be unusual. Support at $64.4 should hold, but the key level is $63.3. Settling below $63.3 would indicate the move up has stalled again and that another attempt to move lower is underway.

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’s move up stalled near $66.4, the equal to (1.00) target of the primary wave up from $57.6 last week. The subsequent pullback initially looked corrective, forming four stars and settling the week above March 23’s open. However, the move down accelerated on Monday and is poised to challenge important support at $62.4 within the next day or so.

WTI Crude Oil - 0.35 Kase Bar
WTI Crude Oil – 0.35 Kase Bar

Today’s move up from $62.8 was shallow and choppy and forms a bearish flag. The flag’s lower trend line is nominally $63.2, which is also an important retracement and today’s midpoint. An early move below this tomorrow would confirm a break lower out of the flag and open the way for $62.4.

That said, should $63.2 hold and prices rise above the flag’s upper trend line around $64.3, look for a test of key resistance at $65.1. Settling above $65.1 would shift near-term odds back in favor of a larger scale move up with near-term targets at $66.1 and $66.7.

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 stalled near crucial resistance at $66.4 Monday and confirmed an intra-day bearish KaseCD divergence. The subsequent pullback completed a bearish Harami line and star today by closing below Friday’s $65.08 midpoint. The pullback is most likely corrective but should test the Harami line and star’s confirmation point near $64.2 tomorrow. A close below this would call for a larger downward correction toward key near-term support at $62.5.

May WTI Crude Oil - 0.50 Kase Bar
May WTI Crude Oil – 0.50 Kase Bar

Tomorrow, look for initial resistance at $65.3 and then $65.8. The $65.8 level is expected to hold, though the near-term outlook would only become bullish again upon a close above $66.4. This is still a crucial resistance level for the wave structure up from $57.6 that connects to $67.1 and then the next major objective protecting the $70.0 level.

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.

May WTI crude oil fulfilled a highly confluent and extremely important target at $64.0 today when price rose to $63.98. The move up comes after prices broke higher out of the bullish descending flat wedge Friday and then tested and held the pattern’s upper trend line Monday. As discussed in our weekly forecast, $64.0 is the gateway to a stronger and possibly longer-term bullish outlook. A sustained close above $64.0 will open the way for the next major objective at $66.4, with intermediate targets of $64.8 and $65.4 between.

WTI Crude Oil - 0.50 Kase Bar
WTI Crude Oil – 0.50 Kase Bar

Crude oil prices pulled back a bit from $63.98 and confirmed a weak bearish KaseCD divergence on the $0.50 Kase Bar chart. This, and the small wave down from $63.98, indicate there is a modest chance for a larger pullback tomorrow. Initial support is $62.9 and key support for tomorrow is $62.3. A close below $62.3 would call for a larger correction to $61.4, which is most important because a close below this would be an early indication that the move up may have stalled again. That said, the outlook does not become solidly negative until there is a sustained close below at least $60.3.

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 WTI crude oil forecast remains slightly negative given today’s decline to $60.27 after testing and holding resistance around $62.0. The move down is expected to continue, but a small double bottom around $60.27 indicates prices will probably challenge $61.4 first. Resistance is expected to hold.

Today’s decline to $60.27 fulfilled important projections for recent waves down from $64.24, $63.28, and $62.33 that connect to $59.7 and key support at $59.1. As discussed in the weekly forecast, $59.1 is the gateway for a longer-term bearish outlook. It may take at least another few days to reach $59.1, but a close below this would finally break WTI’s stalemate and open the way for a more bearish outlook.

That said, this afternoon’s move above the $60.85 swing high completes the small double intra-day bottom at $60.27. The pattern’s target is $61.4, which is also in line with today’s open. This level should hold, but a close over $61.4 would call for another attempt at $61.9 and possibly $62.6. The latter is most important for the near-term because it connects to $63.3 and ultimately $63.9, the key threshold for a long-term bullish outlook discussed at length in the weekly 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 long-term outlook remains slightly negative for WTI crude oil, but the near-term outlook seems to switch from positive to negative on a day-to-day basis. This generally reflects a market that is unsure of itself and could indicate a trading range is forming. For now, though, given today’s failure to settle above the equal to (1.00) target of the wave $60.13 – 61.97 – 61.1 and the 62 percent retracement of the decline from $64.24, odds have shifted in favor of testing support tomorrow.

The formation of a daily shooting star setup and wave formation down from $63.28 call for $62.0 and possibly $61.6 tomorrow. These are targets for the small wave down from $63.28 and the shooting star’s completion and confirmation points. A close below $62.0 would open the way for $61.1 and $60.7. The latter is most important because it is the smaller than target of the wave $64.24 – 60.13 – 63.28 and connects to $59.2 and lower.

April WTI Crude Oil - 0.35 Kase Bar
April WTI Crude Oil – 0.35 Kase Bar

Initial resistance at $63.0 should hold, but the key level for the near-term is $63.5. A close above this would call for $64.1, the smaller than target of the wave up from $57.9. This level is the key to a bullish outlook because a close above $64.0 would shift long-term odds in favor of a continued rise to $66.5 and higher.

This is a brief analysis for the next day or so. Our weekly Crude Oil Commentary 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’s settle below Friday’s $63.1 midpoint and the daily bearish engulfing line is negative for tomorrow’s outlook.

There is immediate support at Friday’s $62.6 open, but the small wave formation down from $64.24 calls for at least $62.3 and likely $61.9. The latter is most crucial for the near-term because it is the 50-day moving average, the 38 percent retracement of the move up from $57.9, and is near last Thursday’s $62.1 midpoint.

April WTI Crude Oil - Daily
April WTI Crude Oil – Daily

A close below $61.9 would open the way for a test of key support at $60.3. This is the 62 percent retracement of the move up from $57.9 and is near calendar January’s open. Settling below $60.3 would shift long-term odds back in favor of a continued decline.

That said, the move down is probably corrective of the move up from $57.9. Today’s $63.5 midpoint and $64.1 open are initial resistance. $63.5 should hold but $64.1 is key. A close above this would call for tests of $64.5 and $65.5, the last levels protecting the $66.39 high.

This is a brief analysis for the next day or so. Our weekly Crude Oil Commentary 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.

April WTI crude oil’s move up from $57.9 is most likely corrective of the decline from $66.39 and may be complete. Important resistance was met at $62.65, a bearish intra-day KaseCD divergence was confirmed, and the subsequent move down is poised to extend. Trading over the next few days should indicate whether the upward correction is complete.

Today, the larger than (1.618) target of the wave $57.9 – 60.61 – 58.09 was met at $62.65. The subsequent wave down, $62.65 – 61.43 – 62.43 has fallen below its smaller than (0.618) target and is now poised to reach at least the $61.2 equal to (1.00) target tomorrow. A close below this would open the way for $60.7, $60.3, and $59.7. Key support for the near-term is $59.7, the 62 percent retracement of the move up from $57.9. Settling below this would put odds strongly back in favor of a continued decline.

April WTI Crude Oil - 0.50 Kase Bar
April WTI Crude Oil – 0.50 Kase Bar

For the move up to continue, support at $59.7 must hold and prices will have to ultimately overcome $63.2, the 62 percent retracement of the decline from $66.39. Tomorrow, look for first resistance at $62.1 and key resistance at $62.6. A close above $62.6 would call for a test of $63.2.

This is a brief analysis for the next day or so. Our weekly Crude Oil Commentary 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.

Outlook for WTI

March WTI crude oil’s formation of a second daily star (in this case a hammer), confirmed daily KCDpeak, oversold Stochastic, and failure to break the $58.07 swing low are all factors that indicate the upward correction from $58.07 still has a reasonable chance of extending before the decline continues. However, unless WTI settles above at least $59.8 and more likely $60.4 to confirm the morning star setup (made up of the aforementioned stars) odds will continue to favor a decline.

March WTI Crude Oil
March WTI Crude Oil

Initial support is the $58.39 swing low, and an early move below this tomorrow will call for $58.0, the smaller than (0.618) target of the wave $60.83 – 58.39 – 59.49. This is a key objective because it is the lowest that the initial wave down from $66.66 projection and is the 38 percent retracement of the move up from this past summer’s $43.91 swing low. Settling below $58.0 will open the way for $57.6 and very likely $57.1, the equal to (1.00) target of the wave down from $60.83.

Should the upward correction attempt to extend again tomorrow, look for initial resistance at last Friday’s $59.8 midpoint. This is the completion point of the morning star setup, a close above which would call for the $60.4 confirmation point. The $60.4 level is key for the near-term because it is also sitting just above the smaller than target of the wave up from $58.07. Settling above $60.4 would call for a likely move above the $60.83 swing high to $61.4, which is in-line with the equal to target of the wave up from $58.07 and the 38 percent retracement of the decline from $66.66.

This is a brief analysis for the next day or so. Our weekly Crude Oil Commentary 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.