Crude Oil Price Forecast – February 9, 2021

WTI Crude Oil Technical Analysis and Short-Term Forecast

WTI crude oil rose as expected today and challenged the $58.5 target discussed in Monday’s analysis. The move up is now poised to reach a crucial bullish decision point at $59.1. This is the intermediate (1.382) target of the March contract’s primary wave up from $27.66 and the equal to (1.00) target of the largest subwave up from $46.3. Overbought weekly and daily momentum oscillators, bearish divergence setups, and today’s hanging man all warn that the move up is nearing exhaustion. Therefore, $59.1 is a probable stalling point. However, settling above $59.1 for a few days will clear the way for a test of $60.0 and eventually a push toward the uptrend’s next major objective at $63.2. The $63.2 objective is the larger than (1.618) target of the wave up from $27.66.

WTI Crude Oil - Daily Chart
WTI Crude Oil – Daily Chart

As mentioned, today’s hanging man and the weekly and daily momentum oscillators warn that the move up will probably stall soon. The most probable stalling point is $59.1. However, as of this afternoon, there are no confirmed bearish patterns or signals that call for a significant test of support before reaching $59.1. Initial support at $57.7 is expected to hold tomorrow and $57.1 is key. Settling below $57.1 will confirm today’s hanging man and clear the way for a test of $56.0 and possibly lower before the uptrend fulfills the $59.1 objective.

This is a brief analysis for the next day or so. Our weekly Crude Oil Forecast and daily updates are much more detailed and thorough energy price forecasts that cover WTI, Brent, RBOB Gasoline, Diesel, and spreads. 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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