WTI Crude Might Be Targeting Below $30.00

22 September 2020

WTI Crude might be preparing to resume lower again after having carved a lower high around $41.46 levels. The commodity had reversed sharply from $43.75 highs earlier and managed to push through $36.00 levels breaking intermediary support around $37.00 levels respectively.

WTI Crude probable wave counts since $43.75 highs is as follows: The entire drop between $43.75 and $36.00 levels seem to have unfolded into 5 waves, making an impulse. An impulse is normally followed by a corrective wave towards the opposite direction.

WTI Crude bulls have managed to produce a corrective (3 wave) rally towards $41.46 mark recently. Further bears might have taken control back as prices have dropped below $40.00 levels for now. Potential Waves 1 and 2 seem to be in place around $36.00 and $41.46 respectively.

If the above proposed structure holds well, WTI Crude should ideally stay below $41.46 and push lower below $36.00 mark, going forward. Please note that fibonacci 1.618 extensions are pointing below $30.00 levels before finding some support.

Immediate resistance is seen towards $43.75 levels, while support is intact around $34.34, followed by $31.00 respectively. A push below $36.00 will confirm that bears are in control and are here to stay for long. Alternately, a push through $41.46 might test $42.00 resistance zone.

Traders might be preparing to initiate fresh short positions around $40.00 resistance zone, with a protective stop above $43.75 and projected targets 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.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In