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

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.

Dhwani Mehta FXStreet

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

WTI

Overview
Today last price	59.31
Today Daily Change	-0.19
Today Daily Change %	-0.32
Today daily open	59.58

Trends
Daily SMA20	61.57
Daily SMA50	60.18
Daily SMA100	54.23
Daily SMA200	47.4

Levels
Previous Daily High	60.06
Previous Daily Low	58.15
Previous Weekly High	62.25
Previous Weekly Low	58.88
Previous Monthly High	67.87
Previous Monthly Low	57.27
Daily Fibonacci 38.2%	59.33
Daily Fibonacci 61.8%	58.88
Daily Pivot Point S1	58.47
Daily Pivot Point S2	57.36
Daily Pivot Point S3	56.57
Daily Pivot Point R1	60.38
Daily Pivot Point R2	61.17
Daily Pivot Point R3	62.28

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.

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