WTI Crude Oil Technical Analysis and Short-Term Forecast
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WTI crude oil rallied and broke higher out of a bullish pennant today. Prices also settled above the $65.3 smaller than (0.618) target of the primary wave up from $61.29, the 50 percent retracement from $69.36, and the 200-day moving average. WTI crude oil is now poised to challenge the 62 percent retracement from $69.36 and the 38 percent retracement from $74.25 at $66.2. This is an important target that could prove to be a stalling point. However, odds favor an eventual rise above $66.2 to challenge the $66.8 equal to (1.00) target of the wave up from $61.29. This is also the highest that the first wave up from $61.29 projects. Settling above $66.8 will confirm a bullish outlook.
There is no substantial technical evidence that suggests the move up will stall before testing at least $66.2. Even so, as stated, $66.2 is a potential stalling point. Also, it is fairly common to see a pullback to test the breakout point of a pattern after a break higher. Should price fall within the next day or so $65.1 should hold. Falling below this will call for a test of $64.7 and possibly key near-term support at $64.0. Settling below $64.0 would signal that today’s break higher out of the pennant was a false breakout. In this case, the near-term odds would shift in favor of challenging $63.1 and lower.
