- WTI price is reversing a dip to 108.00 amid risk-aversion.
- Sustaining above the 50-SMA on the 4H chart is critical for oil bulls.
- RSI defends the midline, backs the bulls ahead of the API data.
WTI (NYMEX futures) is attempting a bounce back above the $109.00 mark, having found strong bids just above $108.00 in the last hours.
The rebound in the US oil comes even though risk sentiment remains sour amid a revival of the global growth fears, in the wake of disappointing Euro area and UK Manufacturing and Services PMIs reports for May.
The renewed selling seen in the US dollar could be aiding the latest uptick in the black gold while markets stay hopeful of yet another drawdown in the American crude stockpiles data. The American Petroleum Institute (API) will release its weekly crude stocks change report towards the NY close at 2030 GMT.
From a short-term technical perspective, the ascending 50-Simple Moving Average (DMA) on the four-hour chart at $108.88 has come to the rescue of bulls, as they have managed to regain control above the latter.
WTI traders are now eyeing a sustained move above the horizontal 21-SMA at $109.10 to cement the recovery momentum.
Acceptance above that level will power bulls to retest the $110.00 threshold. Further up, the previous day’s high of $111 25 could be challenged by the bullish traders,
The 14-day Relative Strength Index (RSI) is inching higher just above the midline, suggesting that recovery could have legs going forward.
WTI: Four-hour chart
On the other side, a four-hourly candlestick closing below the 50-SMA will revive the bearish interests. WTI will then resume its corrective downside towards the daily lows of $108.04 once again.
The next significant downside target is aligned at the upward-sloping 200-SMA at $106.63.
WTI: Additional levels to watch
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