WTI Price Analysis: Sellers continue to lurk near $40.80
|- WTI edges lower, with 21-HMA support at risk.
- A firm break above $40.80 is critical to extending the rebound.
- Hourly RSI points south and heads towards the bearish zone.
WTI (futures on NYMEX) turns south towards the $40 mark in the European session, having faced rejection above $40.50 on several occasions.
The price now tests the critical upward-sloping 21-HMA at $40.35, below which the downside will open up towards the powerful support around $40, which the confluence of the 50, 100 and 200-HMAs.
Acceptance below the latter will bring the rising trendline support at $39.41 back in play.
The hourly Relative Strength Index (RSI) has turned south and heads towards the bearish region, currently at 52.10, suggesting that the bearish momentum has gained traction.
Alternatively, the horizontal trend line (orange) resistance at $40.80 is needed to be taken out, in order to extend Thursday’s comeback from near $39.20 region.
The $41 barrier will be the next target for the buyers, above which Monday’s high of $41.51 could be exposed.
WTI hourly chart
WTI additional levels
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