With Goldman announcing an end of year price target of $43/barrel, I pulled up the four-hour crude chart and came to a different conclusion.
First, notice that on September 22 crude completed its first higher high in several weeks marked as “A”. This move was followed by a textbook pullback, marked as “B”, into a zone of price and Fib support that was created by marking the fib retracements of multiple price moves over the last two months. With that A-B move clearly marked, we are able to use our Price Target Formula and a 127% Fib extension to establish a price target. And it isn’t $43. Both methods show price moving toward the mid $48 range.
Crude Oil four-hour chart
I’m currently looking for long trades in CL unless today’s Crude Oil Inventory numbers show a significant build. As always, trade well and be well.