WTI Price Analysis: Drops to test 100-HMA once again, API in focus
- WTI fails to sustain the uptrend above $69, turns into the red zone.
- The US oil challenges the key 100-HMA support at $68.19.
- Bearish RSI suggests more losses in the offing, with eyes on API data.
WTI (NYMEX futures) is snapping its two-day advance on Tuesday, reversing towards the $68 mark, as investors assess the impact of the hurricane IDA ahead of Thursday’s OPEC+ meeting.
The black gold is shrugging off the broad US dollar weakness, as profit-booking seems to be the main theme heading into the American Petroleum Institute’s (API) weekly crude stockpiles data.
From a short-term technical perspective, WTI bears are back in control after the bulls failed to find acceptance above the $69 threshold earlier this Tuesday.
The renewed downside pressure knocked off WTI firmly below the horizontal 21 and 50-hourly moving averages (HMA), as the bears now challenge the ascending 100-HMA at $68.19.
The risks remain to the downside, as the Relative Strength Index (RSI) is pointing south below the midline.
If the 100-HMA support gives way, then a drop towards Monday’s low of $67.6 remains inevitable.
Further south, the upward-sloping 200-HMA at $66.35 could be on the sellers’ radar.
WTI: Hourly chart
On the upside, acceptance above the 50-HMA at $68.65 to recapture the 21-HMA hurdle at $68.81.
However, only an hourly close above the $69 mark could call for a sustained upswing towards the $70 psychological level.
WTI: Additional levels to watch
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.
