WTI Price Analysis: Battles with 21-HMA on the road to recovery

WTI (futures on NYMEX) is attempting a tepid recovery from five-month lows of $33.85 reached in early Asia, as the bulls were rescued by the upbeat Chinese Caixin Manufacturing PMI and a rebound in Japanese exports orders.

Despite the bounce, the risks remain skewed to the downside for the black gold, as the coronavirus fears deepen, with the UK and key European economies under fresh lockdowns, stoking oil demand concerns.

Meanwhile, investors scurry up to the safe-haven US dollar ahead of Tuesday’s election, exerting additional downward pressure on the USD-denominated oil.

The oil bulls are trying hard to close the bearish opening gap, as the prices waver around $35 mark, unable to stage a sustained recovery through the downward-sloping 21-hourly moving average of $35.20.

Acceptance above the latter could expose the bearish 50-HMA at 35.83. Buyers need a daily closing above $35.90 to sustain the recovery momentum.

Alternatively, the five-month lows could be put to risk if the sentiment on Wall Street turns sour. Although that look unlikely, indicated by the 1.15% rally in S&P 500 futures, at the moment.

WTI hourly chart

WTI additional levels