- WTI sellers return following rejection at 50-DMA resistance at $60.32.
- The US oil could risk a drop towards the ascending trendline support at $57.85.
- RSI trades flat while within the bearish zone, pointing to more losses.
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady above 1.0750 on improving risk mood
EUR/USD continues to trade above 1.0750 on Monday. The data from Germany showed that IFO Business Climate Index improved to 93.3 in March from 91.1 in February, helping the Euro stay resilient against the US Dollar. The risk-positive atmosphere further supports the pair.
GBP/USD regains 1.2250, Bailey speech eyed
GBP/USD clings to modest gains above 1.2250 on improving risk mood on Monday. The US Dollar struggles to gather strength despite rising US Treasury bond yields. In the absence of high-impact data releases, investors will pay close attention to BOE Governor Bailey's speech.
Gold extends slide to $1,950 as US yields rebound
Gold price has extended its daily slide to the $1,950 area in the European session. Amid easing fears over a global banking crisis, the benchmark 10-year US Treasury bond yield rebounds toward 3.5% on Monday, weighing heavily on XAU/USD.
Four reasons why SUSHI holders will have a bullish week despite SEC's move
SushiSwap price undid the early March gains in the last week after the SEC subpoenaed the platform’s head chef Jared Grey. As a result of this announcement, the token collapsed by roughly 18%.
Alibaba (BABA) edges higher after Jack Ma returns to China for AI talk
BABA shareholders begin the week with a glimmer of hope after founder Jack Ma was seen visiting China after spending more than one year abroad.