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.
This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. If you are interested in learning more, please sign up for a complimentary four-week trial.
