WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil broke higher out of a bullish pennant again. Prices also settled above the $64.3 smaller than (0.618) target of the wave up from $61.29 and the equal to (1.00) target of the wave up from $61.45. The move up is now poised to reach the $65.3 intermediate (1.382) target of the wave up from $61.45 and then the next major objective at $66.2. The $66.2 objective is key because it is the equal to target of the wave up from $61.29, the 38 percent retracement of the decline from $74.25, and the 62 percent retracement from $69.36. Settling above $66.2 will confirm a break higher and a bullish outlook for WTI crude oil.
Today’s move up stalled just below the 200-day moving average. However, there are no bearish patterns or signals that call for the move up to stall. Even so, with a false break higher out of the pennant taking place just a couple of weeks ago, WTI crude oil must confirm this breakout and a firm bullish outlook by settling above $66.2. Should prices fall and close below $63.4, look for WTI to fall back below the upper trend line of the pennant, signaling another false breakout. In this case, the near-term odds would shift in favor of testing resilient support at $61.8 again.
