WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil rose to test and hold the crucial $58.8 level before pulling back again. The $58.8 level is key near-term resistance because it is the larger than (1.618) target of the first wave up from $54.89, the smaller than (0.618) target of the primary wave up from $54.89, and the 62 percent retracement from $61.25. The $58.8 level also sits just above the 50-day moving average, which has held on a closing basis. Today’s $58.87 high aligns with the $58.88 swing high, reinforcing resistance around $58.8.
Today’s close below the 20-day moving average and the smaller than (0.618) target of the wave down from $58.88 indicates that WTI crude oil should test the $56.3 equal to (1.00) target tomorrow. This objective is in line with the $56.31 swing low and the 62 percent retracement of the rise from $54.89. Settling below $56.3 will imply that the corrective move up from $54.89 is complete, opening the way for a test of the $55.7 smaller than target of the wave down from $60.12 and likely the $55.3 intermediate (1.382) target of the wave down from $58.88.
Should $56.3 hold, and prices recover to rise above $58.2, look for another test of $58.8. Settling above $58.8 will put the near-term odds in favor of WTI crude oil rising to $58.8, $59.9, and eventually the $60.3 equal to target of the primary wave up from $54.89.
