WTI Crude Resistance Is Seen Around $42.50-43.00

28 July 2020

WTI Crude might have carved a meaningful top around $42.50 levels or would print yet another high around $43.00 levels before reversing lower again. The commodity might be preparing to produce a corrective drop towards $26.00 levels at least.

WTI Crude probable wave counts are as follows: The rally through $0.01 lows since April 2020 could be into its last leg to complete a corrective A-B-C. We have presented an hourly chart view since $37.00 lows, which might be close to complete.

Waves A and B are not seen on the current chart, while Wave C could be unfolding as a potential ending diagonal structure since $37.00 lows. An ending diagonal is a potential terminating pattern which shows exhaustion.

WTI Crude rally sine $0.01 historic lows in April 2020 could be near to completion with the ending diagonal Wave C shown here. Within the diagonal, potential Waves 1, 2, 3 and 4 seem to be complete and we might see a push towards $43.00 as Wave 5 completes.

We can expect a sharp reversal thereafter. Alternately, a drop below $40.50 would confirm that a meaningful top is already in place around $42.50 and WTI Crude is on its way lower. Either way, the commodity looks ready to turn lower.

Most traders might be preparing to initiate fresh short positions from $43.00 levels, with protective stops just above swing highs. Watch out for a break below $40.50 initial support which confirms a meaningful top in place.

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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