WTI Crude Oil
WTI crude oil settled right at the $49.6 target. Support at $49.6 is highly confluent and may still prove to be a stalling point. However, given WTI fell to $49.66, rose to $51.55, then fell back to $49.6 at the end of the day implies that the move down will extend to at least $49.0 and likely $48.6 tomorrow. These are the intermediate (1.382) and larger than (1.618) targets of the wave down from $51.55, respectively. Settling below $48.6 will call for the next major objective at $47.8.
Today’s inverted hammer suggests another test of resistance might take place soon. Initial resistance is $50.3 and then $51.0, the higher if which is expected to hold. Key resistance is $51.6, a close above which would call for $52.6 and possibly higher before the decline eventually continues.
Brent Crude Oil
Brent’s move down is poised to extend and the next target is $53.6. Closing below this will clear the way for $52.9 and lower. A daily inverted hammer suggests another test of resistance might take place soon, but $55.0 is expected to hold. Key resistance is $55.7, a close above which would call for $56.3 and higher.
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