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

WTI

Overview
Today last price 62.25
Today Daily Change 0.76
Today Daily Change % 1.23
Today daily open 61.54
 
Trends
Daily SMA20 57.04
Daily SMA50 52.93
Daily SMA100 47.38
Daily SMA200 43.53
 
Levels
Previous Daily High 61.77
Previous Daily Low 58.81
Previous Weekly High 62.25
Previous Weekly Low 58.58
Previous Monthly High 53.94
Previous Monthly Low 47.26
Daily Fibonacci 38.2% 60.64
Daily Fibonacci 61.8% 59.94
Daily Pivot Point S1 59.64
Daily Pivot Point S2 57.75
Daily Pivot Point S3 56.68
Daily Pivot Point R1 62.6
Daily Pivot Point R2 63.67
Daily Pivot Point R3 65.57

 

 

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