Crude Oil Short-Term Forecast – March 27, 2018

WTI crude oil stalled near crucial resistance at $66.4 Monday and confirmed an intra-day bearish KaseCD divergence. The subsequent pullback completed a bearish Harami line and star today by closing below Friday’s $65.08 midpoint. The pullback is most likely corrective but should test the Harami line and star’s confirmation point near $64.2 tomorrow. A close below this would call for a larger downward correction toward key near-term support at $62.5.

May WTI Crude Oil - 0.50 Kase Bar
May WTI Crude Oil – 0.50 Kase Bar

Tomorrow, look for initial resistance at $65.3 and then $65.8. The $65.8 level is expected to hold, though the near-term outlook would only become bullish again upon a close above $66.4. This is still a crucial resistance level for the wave structure up from $57.6 that connects to $67.1 and then the next major objective protecting the $70.0 level.

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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