WTI Crude Oil Technical Analysis and Short-Term Forecast
The outlook for WTI crude oil remains bullish after overcoming the $65.47 swing high and challenging the $65.7 target today. This is a potential stalling point because $65.7 is the larger than (1.618) target of the primary wave up from $57.29, the XC (2.764) projection of a subwave up from $60.61, and is in line with the smaller than (0.618) target of a compound wave up from $60.61. Furthermore, a small intraday double top might be forming around $65.8.
Nevertheless, any move down will most likely prove to be a short-lived correction. Moreover, a move above $65.84 early tomorrow will negate the potential double top and call for at least $66.7 and possibly the next major objective at $67.7 during the next day or so. The $67.7 objective is the most confluent target on the chart and is crucial because it ties the waves up from $57.29 to the wave structure before the $67.29 swing high. Settling above $67.7 will clear the way for $69.1 and $70.1.
With that said, should WTI take out the $64.96 swing low first, the potential $65.8 double top would be confirmed. This would then call for a test of $64.2, which is in line with the pattern’s target, today’s open, and the 21 percent retracement of the rise from $57.29. Support at $64.2 is expected to hold, but a close below this will call for a test of key near-term support at $62.6. Settling below $62.6 is doubtful but would reflect a bearish shift in near-term sentiment.
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