No doubt about it, it has been a pivotal week for WTI crude oil. After a Monday bull run extending November’s gains, price has become compressed. The Tuesday/Wednesday inventory cycle did little to stimulate traders and investors. It looks as though indecision is dominating market sentiment.

December WTI Crude Oil-Technical Outlook

The macro topside resistance levels outlined earlier this week are proving valid. Price has found an intermediate top slightly above the macro 38% retracement.

December WTI Crude Oil Futures, Daily Chart

While my bias is still technically bullish, this market is showing signs of slowing down. However, price is still in position to break higher from here. A few observations for WTI crude:

• Price is actively trading above the 38% retracement of the current bull run, $56.38. As long as action remains above this level, the uptrend is technically valid.

• Every trader’s eyes are fixed on the 38% macro level at $57.79 and 2017’s high of $58.44. In the event that the yearly high is taken out, we will see a test of $60.00 directly.

Overview: The current behavior exhibited by WTI crude may be the beginning of a long-term shift in the market dynamic. $60.00 oil is a major psychological level and one that may act as a catalyst for participation.

If we see $60.00 sustained during the North American Winter months, a bull market for the Spring and Summer of 2018 is extremely likely.