WTI Crude Oil
WTI crude oil has been trading in a very indecisive manner as traders seem to be waiting for clarification of recent events or new external factors to drive the next leg lower or higher. This was most evident today after the early move up overcame $68.1 as expected but stalled before reaching key near-term resistance at $69.1. The subsequent decline suggests that whatever factors drove prices higher late yesterday did not fully pan out today and that the overall outlook remains neutral-to-negative.
There is crucial support at $66.3 and prices are already working their way toward that objective this afternoon. The key, however, will be a close below $66.3, which would then clear the way for prices to fall toward the next major objective at $63.9. Even so, the move down will most likely remain a grind, so there is a reasonable chance that prices could temporarily stall at $65.8 and $65.1 as prices fall toward $63.9.
Immediate resistance is $68.1, a level that should continue to hold on a closing basis. Key resistance in the short-term is $69.2, a close above which would shift the near-term outlook to positive and call for another attempt at $70.4 and higher.
Brent Crude Oil
Brent crude oil’s move up stalled again today at $73.93, which was just above last Wednesday’s $73.5 midpoint and the 100-day moving average. The move down from $73.93 then formed a wave that projects to $71.9 as the smaller than (0.618) target. This is an important near-term objective because a close below this would open the way for $71.3 and lower.
Resistance at $73.7 is expected to hold, though $74.7 is still most important for the short-term outlook. Closing above this would be positive and call for key upper resistance at $75.3. Such a move is doubtful though without a surprise bullish shift in external factors.
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