WTI Crude Bears Eyeing Below $30.00 Levels

15 September 2020

WTI Crude has remained in control of bears since $43.75 levels and managed to break below near term support at $41.45 and $38.70 levels respectively. The commodity may be targeting below $34.00 and $30.00 levels in the near term, before producing any meaningful pullback.

WTI Crude probable wave counts are as follows: The commodity had terminated a potential ending diagonal structure at $43.75 before reversing sharply lower. The drop seems to be in 3 waves until now and could unfold as an impulse breaking below $34.34 and $30.00 levels.

If the above proposed structure holds well, WTI Crude would complete an impulse wave between $43.75 and below $30.00 levels respectively. This would also mean that the drop is incomplete and that bears would be inclined to print yet another low possibly towards $16.00 levels.

Before the drop could exceed any further, WTI Crude would produce a pullback toward $41.00/42.50 levels, which should act as resistance. The commodity might reverse lower from there and push toward $16.00 levels, over the next several trading sessions.

The above description is of a potential zigzag underway. Alternately, if a flat structure is unfolding, WTI Crude might witness a corrective pullback from current levels ($37.00/20) and push through $41.00/42.00 before reversing lower through $30.00.

Either way, traders might be inclined to initiate fresh short positions on a potential counter trend rally towards resistance around $41.00, with protective stops above $44.00 and projected target below $30.00 levels respectively.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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