WTI Crude Oil (Nymex) : Sell @ 35.41 (CMP) | Stop @ 38| Target @ 26.75 — 21.65
The WTI Oil is currently quoting at $35.4/bbl trading below the previous bottom point B at 37.75 level. The above technical chart shows A-B-C Pattern, with Wave C is in continuation. The chart indicates that downfall in prices will continue in the coming sessions if resistance of 38 holds on daily closing basis. .
WTI Oil had fallen from 62 (Point A) in June and tested the support level of 37.75 (Point B) in August. Thereafter, prices retraced by more than 50% of fall seen from Point A to Point B and tested the high of 51 (Point C) nearing to 61.8% and resumption of down trend was seen.
WTI Oil prices are trading below the previous bottom of point B at 37.75 and is expected to continue to move downward unless a breakout occurs above 38 on closing basis. If prices breaks the support of 34.75 then prices would weaken further.
The difference between Point A and Point B comes to 24.25 points. Considering 100% of this difference from Point C, the downside target comes to 26.75 level. Thereafter, the next target could be 21.65, which is 121% of the same difference.
However, if prices reverts from the current level and crosses the resistance of 38 on closing basis then prices may rise towards 51 level.
WTI Oil prices are trading below the previous bottom of point B at 37.75 and is expected to continue to move downward unless a breakout occurs above 38 on closing basis. If prices breaks the support of 34.75 then prices would weaken further.
The difference between Point A and Point B comes to 24.25 points. Considering 100% of this difference from Point C, the downside target comes to 26.75 level. Thereafter, the next target could be 21.65, which is 121% of the same difference.
However, if prices reverts from the current level and crosses the resistance of 38 on closing basis then prices may rise towards 51 level.
