Chart of the Week: WTIC
This week we are going to be focusing on the commodity of crude oil – light crude oil; WTIC is the symbol.
On this weekly chart, we can see that this commodity has been on fire from the mid-part of June when crude was down in the high $60s. We are up to the low $90s right now. It’s been an incredible run, more than 30% in about two and a half months. Spectacular run here.
But we are running into a little resistance going back back to 2022. You can see the resistance right there at about $95. I have been talking about that more recently in the chat room and over on Twitter that $95 is an area where crude is going to come into a little bit of trouble. And then at about $98 as well.
Make no mistake – this has been a fantastic run here. You can see the shape of the parabola here. Crude has turned upwards in a big way after making a series of lower highs and lower lows from the peak in 2022.
In 2022 we got up to about $125 per barrel. We came sharply down and lost almost 50% off of that level – certainly off the March 2022 level – and we are making our way back over here.
This commodity is heading higher
If we were going to look for a target area, other than those two resistance areas, let’s do a fibonacci retracement here from the higher levels in 2022 to the lows in 2023. We come up with some similar areas over here from around $93 – $100. That comes in about a $103 for a 61% retracement.
Overall, I’d be looking for a $100.50 to a $104 would be a good target before crude stops. You’ve got a lot of room from here – from $90 all the way up to the $104 – $105 level – to make some money with crude. That’s obviously not good for the consumer, but we are just looking at the charts here and paying attention to crude oil. Supplies are tight, demand is strong, and that means higher prices down the road.
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