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.

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