WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil broke higher out of a bullish flag again. The most recent move up came after holding crucial support at $58.1 following last week’s failed breakout of the flag. Today’s close above the $60.7 smaller than (0.618) target of the wave up from $58.1 and the 62 percent retracement of the decline from $61.84 was also bullish for the outlook in the coming days. WTI now favors a move above the $61.18 swing high to challenge the $61.7 equal to (1.00) target of the wave up from $58.1. This is a key objective because $61.7 is also in line with the smaller than target of the wave up from $55.99, the 38 percent retracement from $71.38, the 62 percent retracement from $65.33, and the 100-day moving average. A sustained close above $61.7 will confirm a bullish outlook for at least another couple of weeks.
Should prices turn lower again before overcoming the $61.18 swing high, which would invalidate the current wave down from $61.84, look for initial support at $60.2 and then $59.8. The $59.8 level is expected to hold. Settling below this will indicate that another false breakout of the flag has occurred. In this case, look for another attempt to take out major support at $58.1.
