WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil fell to challenge resilient support at the $81.0 target of a confirmed double top that formed around $86.9. The $81.0 target held again, and prices formed a wave up from $80.95 that warns a test of $82.8 might take place first. Even so, the move up will likely be a correction because the waves down from $86.97 and $85.64 have fulfilled their smaller than (0.618) targets. Waves that meet the smaller than target typically extend to at least the equal to (1.00) target, in this case, $79.7 for both waves. Closing below $81.0 will open the way for tests of $80.3 and the $79.7 objective within the next few days.
With that said, WTI crude oil’s pullback from $86.97 may form a bullish flat descending triangle. This is a continuation pattern, a break higher out of which would be confirmed by a close above key near-term resistance at $84.6. Should WTI crude oil overcome $82.8 look for a test of $83.3 and possibly $84.6. Settling above $84.6 would strongly suggest that the corrective pullback from $86.97 is complete and shift the odds in favor of WTI crude oil rising to $$85.1 and higher.
