WTI looks to test 21-DMA amid potential return of Iranian supply

WTI sellers fight back control on Thursday, 21-DMA support in focus.
The US oil hit by a likely return of Iranian supply, as nuclear talks progress.
WTI needs to find acceptance above $66.00 to revive upbeat momentum.

Dhwani Mehta FXStreet

WTI (futures on NYMEX) is meandering in daily lows near $65.50, feeling the pull of gravity amid concerns over increased supply if the sanctions on Iranian oil exports are lifted amid progress in the nuclear talks.

Meanwhile, oil demand concerns from India, the world’s third-largest oil consumer, continue to weigh on the black gold. Further, WTI also bears the brunt of the Fed’s tapering expectations, which keeps the sentiment around the US dollar buoyed.

However, the downside appears cushioned amid the arrival of the summer driving season in the US and Europe, which could likely bump up oil’s demand.

From a near-term technical perspective, the risks remain tilted to the downside, as oil looks to test the 21-daily moving average (SMA) at $64.91.

Defending this support is critical for the bulls, as a break below it could trigger a sharp drop towards the 50-DMA at $62.62.

WTI daily chart

However, with the 14-day Relative Strength Index (RSI) still holding above the central line, the 21-DMA support is likely to hold.

WTI needs to find acceptance above the recent tops near $66.40 for any meaningful recovery.

Going forward, a three-month-long rising trendline resistance at $67.41 is expected to act as a tough barrier.

WTI additional levels

WTI

Overview
Today last price	65.61
Today Daily Change	-0.46
Today Daily Change %	-0.70
Today daily open	66.07

Trends
Daily SMA20	64.88
Daily SMA50	62.6
Daily SMA100	60.21
Daily SMA200	51.3

Levels
Previous Daily High	66.34
Previous Daily Low	65.18
Previous Weekly High	67
Previous Weekly Low	61.53
Previous Monthly High	65.4
Previous Monthly Low	57.66
Daily Fibonacci 38.2%	65.9
Daily Fibonacci 61.8%	65.62
Daily Pivot Point S1	65.38
Daily Pivot Point S2	64.7
Daily Pivot Point S3	64.22
Daily Pivot Point R1	66.55
Daily Pivot Point R2	67.03
Daily Pivot Point R3	67.71

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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