WTI crude oil still looks weaker than Brent and products after forming a star today and settling below Friday’s $48.28 midpoint. However, prices are poised to break higher out of a bullish ascending triangle and should meet the smaller than (0.618) target of the wave $47.0 – 48.44 – 47.84 at $48.7. A close above this would clear the way for the equal to (1.00) target at $49.3. This is an important objective because it is also in line with the smaller than target of the wave $45.58 – 49.42 – 47.0.
There is an outside chance the formation that makes up the ascending wedge is alternatively a double top at $48.44. To confirm the pattern prices would have to hold $48.44 and settle below the $47.84 swing low. This would then call for a test of the double top’s $47.2 target. Settling below $47.2 would call for the decline to extend to $46.8 and $46.4. The $46.4 level is most important because it is the smaller than target of the larger scale wave $50.51 – 45.58 – 49.42.
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