WTI Crude Oil Technical Analysis and Short-Term Forecast
WTI crude oil’s move up from $38.87 stalled short of the $41.1 objective and finally proved to be corrective of the decline from $41.72. WTI took out the $39.0 smaller than (0.618) target of the primary wave down from $41.72 and stalled marginally below the 62 percent retracement of the rise from $36.58. The move down might become a grind during the next few days, but odds favor a test of the $38.0 equal to (1.00) target. Closing below this would then call for the key objective at $37.1. This is the smaller than (0.618) target of the bigger wave down from $44.05. Settling below $37.1 would clear the way for much lower prices and a much more bearish outlook in the coming weeks.
Nevertheless, because the move down stalled at the 62 percent retracement of the rise from $36.58 and $39.0 held on a closing basis there is a modest chance for a larger test of resistance early tomorrow. Initial resistance at $39.7 is expected to hold and key resistance is $40.5. Settling above $40.5 would shift near-term odds back in favor of making a push toward $41.6. This is the smaller than target of the wave up from $36.58 and the barrier for renewed a bullish outlook.
Brent Crude Oil Technical Analysis and Short-Term Forecast
Brent settled below the 62 percent retracement of the rise from $39.88, confirmed the $43.07/$43.03 pseudo double top, and took out the smaller than (0.618) target of the primary wave down from $44.30. Brent is now poised to extend to $40.3, a close below which will call for a test of key support and the barrier to a much more bearish outlook in the coming weeks at $39.9.
With that said, the larger than (1.618) target of the wave down from $43.07 held today. Therefore, there is a modest chance for a test of $42.2 before taking out $40.9. Key near-term resistance is $43.0. Closing above this will call for a test of $43.6, which then connects to $45.3 and higher.
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