WTI Crude might be underway towards $32.50 at least, if not lower. The commodity seems to have carved a meaningful top around $42.50 levels on July 21, 2020. Since then, it has reversed lower and broken below its immediate trend line support.
Furthermore, WTI Crude has also broken initial price support around $39.00 levels as seen on the 4H chart here. The subsequent counter trend rally has also reversed from fibonacci 0.618 retracement around $41.10 levels.
Ideally, bears should remain in control from here and push prices lower towards $36.30 and $32.50 respectively, before reversing higher again. Let us now look at the probable wave counts for WTI Crude. After printing historic lows at $0.01 in April in 2020, WTI Crude has been on the rise.
The commodity has remained in control of bulls and managed to carve a series of higher highs and higher lows through $42.50 levels until recently. The rally from $0.01 through $42.50 seems to be in 3 waves, hence corrective.
WTI Crude prices may drop towards $32.50 and $16.00 levels in the coming sessions. It is too early to confirm but prices may consolidate within a trading range and unfold as a triangle, before breaking lower towards yet another low.
Traders might be preparing to initiate fresh short positions towards $32.50 and $16.00 levels over the near term. The protective stop would go around $43.00 mark and projected target towards $32.50 at least. Only a break above $42.50 would change the near term bearish view.
Technical Analysis Team
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