Crude Oil Price Forecast – June 16, 2020

WTI Crude Oil Price Forecast

The long-term outlook for WTI crude oil is bullish. The move up is poised to eventually reach $41.8 where it will attempt to fill the July contract’s March 7 gap down from $41.88. However, WTI has desperately been due for a significant correction. Based on this afternoon’s price action, there is still a good chance for a larger test of support during the next couple of days.

WTI Crude Oil – $0.65 Kase Bar Chart

There is little doubt that the move down from $40.44 is corrective. Today’s close above the 62 percent retracement of the decline to $34.36 is positive for the near-term outlook. Even so, today’s move up stalled just below the $39.1 target as called for in yesterday’s update. Also, the wave formation down from $39.06 calls for a test of $37.3 and likely $36.3 before a new high is made. Falling below $36.3 will call for $35.3, the smaller than (0.618) target of the primary wave down from $40.44. A close below $35.3 would call for $33.0 and possibly lower.

Should WTI overcome $39.2, look for a test of what has become key near-term resistance at $40.1. Settling above this will shift near-term odds in favor of making the push to $41.8 sooner rather than later.

Brent Crude Oil Price Forecast

Brent crude oil settled above the 62 percent retracement of the decline from $43.33. This strongly suggests that the recent move down is corrective and that a new high will likely be made soon. However, today’s move up stalled just above the larger than (1.618) target of the primary wave up from $37.01. Therefore, a test of $40.0, likely $39.3, and possibly $38.6 is expected before a new high is made. Settling below $38.6 will call for key support at $37.6, a close below which would call for a much more substantial downward correction before the move up ultimately continues.

For tomorrow, resistance at $41.7 is expected to hold and $42.6 is key. Settling above $42.6 will open the way for $43.5 and higher.

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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