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.

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