Crude Oil Forecast: June WTI Confirms Double Top, Decline Likely Corrective

Late last week, June WTI crude oil challenged key resistance at $44.5. This is a confluence point, and most importantly, the 1.618 projection of Wave I (not shown), $30.79 – 38.52 – 32.1. A close over $44.5 will open the way for the next leg higher, which could push WTI crude oil prices into the upper $40s and possibly the low $50s.

That said, a small double top formed near $44.5 on Friday and was confirmed Monday upon the close below $43.05. The confirmed double top and waves down from $44.49 and $44.45 call for the pullback to extend to at least $42.1 and likely a confluence area near $41.6.

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The move down has been shallow and choppy though, indicating it is most likely corrective of the move up. Unless $41.6 is taken out on a sustained closing basis, we still expect prices to attempt to overcome $44.5 again. A move above $43.3 in early trading tomorrow would call for $43.8 and possibly $44.5.

This is a brief analysis and outlook for the next day or so. Our weekly Crude Oil Commentary is a much more detailed and thorough energy price forecast. If you are interested in learning more, please sign up for a complimentary four-week trial.

Published by

Dean Rogers, CMT

Dean Rogers, CMT is the general manager of the Kase Call Center in Albuquerque, New Mexico. He oversees all of Kase and Company, Inc.’s operations including research and development, marketing, and client support. Dean began his career with Kase in early 2001 as a programmer but has developed into Kase’s senior technical analyst. He writes Kase’s award-winning weekly Crude Oil, Natural Gas, and Metals Commentaries. He is an instructor at Kase's classes and webinars and provides all of the necessary training and support for Kase's hedging models and trading indicators for both retail and institutional traders.

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