WTI Crude Oil Technical Analysis and Short-Term Forecast
WTI crude oil broke higher out of an intra-day coil pattern and settled above the $62.43 swing high. This confirmed the double bottom between the $60.61 and $60.66 swing lows that formed Monday. The move up is now positioned to challenge a bullish decision point at $63.5 early tomorrow. This is the larger than (1.618) target of the wave up from $60.61, the 78 percent retracement of the decline from $64.38, and most importantly, the 62 percent retracement of the decline from $67.29. Closing above $63.5 would imply that the corrective move down from $67.29 is complete, clearing the way for a test of the double bottom’s $64.2 target. This then connects to $64.9 and higher.
Nevertheless, when WTI rose to $64.38 just over a week ago $63.5 held on a closing basis. This has been a strong level of resistance and is still a highly confluent wave projection and retracement. Should WTI hold $63.5 look for a test of $62.3 and possibly $61.7. Support at $61.7 is expected to hold. Closing below this would reflect a bearish shift in near-term sentiment and call for a test of $59.8 and possibly lower.
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