WTI Price Analysis: Drops towards 21-HMA after rejection at the $63 mark
- WTI extends correction towards $62 mark.
- 21-HMA could offer immediate support to the bulls.
- Fed Chair Powell’s speech and API crude stocks data eyed.
WTI (futures on NYMEX) clocked fresh 13-month highs at $62.93 in early Asia and since then it's on a steady retreat, with the correction picking up pace in the European session.
At the time of writing, the US oil trades at $62.25, still adding 1.70% on the day. The bulls are eyeing a weekly gain after ending last week in the red.
The profit-taking slide in the black gold could be also exacerbated by the souring risk sentiment, as the European stocks and US equity futures turn south. Nervousness ahead of the Fed Chair Powell’s testimony seems to be creeping in and weighing on the risk appetite.
From a near-term technical perspective, the black gold has found support just above the bullish 21-hourly moving average (HMA) at $61.88.
The latest leg down could be attributed to the south turn seen in the relative strength index (RSI), as it dropped from near 68 region to 61.05.
The next support awaits near $61.50, daily lows.
However, with the RSI still holding above the midline, the bulls could regain control and drive the prices back toward the multi-month highs.
Markets will look forward to Powell’s testimony and API weekly crude stocks data for near-term trading opportunities in oil.
WTI hourly chart
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.
