WTI Price Analysis: Bears set to test critical support at $62.65
- Sellers return after WTI faces rejection above 50-HMA.
- The US oil clings to 21-HMA support just above the $63 mark.
- RSI turns bearish, key support at $62.65 appears at risk.
WTI (futures on NYMEX) has wiped off early gains, now back in the red zone around the $63 mark, as sellers fight back control in the European session.
At the time of writing, WTI is flirting with the downward-pointing 21-hourly moving average (HMA) support at $63.07, modestly lower on the day.
The bearish pressures got revived after the US oil failed to find acceptance once again above the 50-HMA at $63.26.
The next cushion for the WTI bulls is aligned at the horizontal trendline support at $62.65, from where the price has rebounded on a couple of occasions.
An hourly closing below that level could expose the bullish 100-HMA cap at $62.36.
The hourly Relative Strength Index (RSI) has edged into the bearish zone, backing the additional downside.
WTI one-hour chart
However, if the 50-HMA hurdle is scaled on a sustained basis, the bulls could look to challenge the April 16 high of $63.93.
Further up, the psychological $64.50 level will be on the buyers’ radars.
WTI additional levels
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.
