WTI Crude Oil Technical Analysis and Short-Term Forecast
WTI crude oil stalled at $69.19 and formed a daily bullish hammer. Today’s prices action was lackluster compared to Monday’s sell-off and suggests that the move down will probably prove to be another short-lived correction. Moreover, the wave formation up from $69.19 calls for a test of at least $71.5, which then connects to $72.5. For the move down to extend again during the next few days $72.5 must hold. Closing above this will complete the hammer, overcome the 62 percent retracement of the decline from $74.2, and call for a test of the hammer’s $73.9 confirmation point.
With that said, today’s hammer is not enough to definitively state that the move down is complete. Falling below $69.8 before overcoming $71.5 will call for a test of $68.5. This is a crucial level because it is the 62 percent retracement of the rise from $65.01. Taking out $68.5 will significantly dampen odds for a continued rise and call for key support at $67.6 to be challenged. This threshold is split between the smaller than (0.618) target of the waves down from $76.07 and $74.2. Settling below $67.6 will open the way for $65.9 and likely lower in the coming days.
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