WTI Price Analysis: Risks further falls towards $58 mark whilst below 50-DMA

WTI (futures on NYMEX) is snapping two-day bullish momentum on Thursday, as it returns to the red zone despite the upbeat market mood and broad-based US dollar decline.

The sentiment around the black gold remains undermined by an unexpected build in the American gasoline inventories, which overshadowed the drawdown in the crude stockpiles recorded last week.

From a near-term technical perspective, the WTI barrel remains exposed to the downside after it failed to find acceptance above the 50-daily moving average (DMA) at $60.32 for the third day in a row.

Adding credence to a potential move lower, the 14-day Relative Strength Index (RSI) keeps its bearish streak intact, as the indicator remains below the 50.00 level.

The ascending trendline support at $57.85 is expected to guard the downside, below which the March 23 low of $57.27 could be tested.

WTI one-day chart

On the flip side, WTI faces immediate resistance at the upward-sloping 50-DMA.

Further up the bearish 21-DMA at $61.46 could limit the recovery attempts.

WTI additional levels