WTI Crude Bears Targeting Below $30.00

29 September 2020

WTI Crude might be preparing to resume lower from sub $40.00 levels. Bulls had managed to produce a counter trend rally at a lower degree and might have hit resistance around $41.46 levels. Bears might remain inclined to push prices below $30.00 mark in the near term.

WTI Crude probable wave counts since $43.75 highs are as follows. The drop between $43.75 and sub $36.00 was an impulse, potential Wave 1 or A (not labelled here). The subsequent rally looks corrective and reached fibonacci 0.618 retracement around $41.46 respectively.

If the above short term wave structure holds well, WTI Crude should remain below $41.46 going further and push lower towards $30.00 and beyond as lower degree Wave 3 progresses. As highlighted on the chart here, initial target is seen towards $35.00 mark.

The larger degree wave structure for WTI Crude is as follows: The commodity had managed to drop through $0.01 historic lows before finding support. The commodity had produced a meticulous rally carving a series of higher lows and higher highs through $43.75 levels.

The entire rally might be retraced in the next few weeks and WTI Crude may drop to $30.00 and $20.00 levels, going forward. Also note that fibonacci 0.618 retracement of the entire rally is seen below $20.00 levels. High probability remains for a bullish turn if prices reach there.

The entire rally might be retraced in the next few weeks and WTI Crude may drop to $30.00 and $20.00 levels, going forward. Also note that fibonacci 0.618 retracement of the entire rally is seen below $20.00 levels. High probability remains for a bullish turn if prices reach there.

Prepared by
Technical Analysis Team

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