The WTI crude oil forecast remains slightly negative given today’s decline to $60.27 after testing and holding resistance around $62.0. The move down is expected to continue, but a small double bottom around $60.27 indicates prices will probably challenge $61.4 first. Resistance is expected to hold.
Today’s decline to $60.27 fulfilled important projections for recent waves down from $64.24, $63.28, and $62.33 that connect to $59.7 and key support at $59.1. As discussed in the weekly forecast, $59.1 is the gateway for a longer-term bearish outlook. It may take at least another few days to reach $59.1, but a close below this would finally break WTI’s stalemate and open the way for a more bearish outlook.
That said, this afternoon’s move above the $60.85 swing high completes the small double intra-day bottom at $60.27. The pattern’s target is $61.4, which is also in line with today’s open. This level should hold, but a close over $61.4 would call for another attempt at $61.9 and possibly $62.6. The latter is most important for the near-term because it connects to $63.3 and ultimately $63.9, the key threshold for a long-term bullish outlook discussed at length in the weekly forecast.
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