Crude Oil Short-Term Forecast – May 15, 2018

The overall outlook for WTI crude oil is positive. However, a double top around $71.9, daily spinning top candlestick reversal pattern, and intra-day bearish momentum divergence indicate the pullback from $71.92 should extend to at least $70.4 tomorrow. This target is split between a projection of the wave down from $71.93 and the double top’s $70.26 confirmation point.

WTI Crude Oil - Double Top
WTI Crude Oil – Double Top

An early move below $70.4 will open the way for $69.9, $69.3, and possibly $68.8. Of these targets, $69.3 is the most likely stalling point because it is near a confluent wave projection and key retracement of the move up from $67.63. Even so, $68.8 has reasonable odds because it is split between the double top’s target and the most important projection of the wave down from $71.92.

Should prices turn higher and overcome $71.4, look for another attempt at $72.0, a close above which would wipe out the double top, spinning top, and bearish divergence signals. This would also open the way for the move up to extend to the next major target at $72.8. This is the most confluent objective as discussed in our weekly Commentary and another likely stalling point for WTI.

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.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.