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.
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.
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