|

WTI Price Analysis: Turns south after facing rejection once again above 50-SMA

  • WTI erases gains, returns to the red in the European session. 
  • Bearish RSI suggests more downside in the offing.
  • OPEC+ outcome much-awaited alongside Powell’s speech.

WTI (futures on NYMEX) drops back below $61, shedding over $1 from daily highs of $61.87, as the bulls turn cautious ahead of the all-important outcome from the OPEC and its allies (OPEC+) meeting and Fed Chair Jerome Powell’s critical speech.

The black gold edged higher earlier this Thursday on reports that the alliance is likely to roll over the oil output cuts next month when compared to expectations of production hike, in light of improved global economic outlook.

Meanwhile, markets await Powell’s take on the recent yield surge, which could have a significant impact on the risk sentiment and the US dollar-sensitive oil.

From a technical perspective, the price of the WTI barrel has failed to find acceptance above the horizontal 50-simple moving average (SMA) on the four-hour chart, now at $61.61.

This has prompted the bears to regain control, knocking-off the prices sharply lower to test the fierce support around the $60.65 region. At that level, the bearish 21-SMA coincides with the upward-sloping 100-SMA.

The selling pressure could likely intensify if the black gold delivers a four-hour candlestick closing below the abovementioned cap. Subsequently, a test of the March low at $59.17 cannot be ruled out.

Alternatively, the WTI bulls need a sustained move above the 50-SMA to extending the upside, with the next resistance seen at the $62 round figure.

The Relative Strength Index (RSI) has pierced through the midline and entered the negative territory, suggesting that the downside seems more compelling in the session ahead.

WTI four-hour chart

WTI additional levels

WTI

Overview
Today last price60.55
Today Daily Change-0.55
Today Daily Change %-0.90
Today daily open61.1
 
Trends
Daily SMA2059.91
Daily SMA5054.81
Daily SMA10048.85
Daily SMA20044.51
 
Levels
Previous Daily High61.87
Previous Daily Low59.17
Previous Weekly High63.72
Previous Weekly Low58.81
Previous Monthly High63.72
Previous Monthly Low51.6
Daily Fibonacci 38.2%60.84
Daily Fibonacci 61.8%60.2
Daily Pivot Point S159.56
Daily Pivot Point S258.01
Daily Pivot Point S356.85
Daily Pivot Point R162.26
Daily Pivot Point R263.42
Daily Pivot Point R364.96

Author

Dhwani Mehta

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.

More from Dhwani Mehta
Share:

Editor's Picks

AUD/USD sits near a one-month top, above 0.7000 amid fresh USD selling

AUD/USD holds above 0.7000 through the Asian session, trading near a one-month high touched earlier this Monday amid renewed US Dollar selling. US bond yields decline further amid a modest pullback in crude oil prices, capping the USD recovery from a three-week low. Moreover, bets for a November RBA rate hike support the Aussie, though upside seems capped ahead of the crucial two-day FOMC meeting, starting Tuesday.

USD/JPY struggles below 157.00 on weak USD; holds above one-month low ahead of Fed, BoJ meetings

USD/JPY attracts fresh sellers during the Asian session on Monday, stalling its recovery from the lowest level since September 18, touched Friday as a further decline in US bond yields weighs on the US Dollar. Meanwhile, the Japanese Yen benefits from a more hawkish BoJ, further weighing on the currency pair. The downside, however, seems limited as traders keenly await Fed and BoJ policy meetings later this week.

Gold sticks to modest recovery gains above $4,000 as Fed hike bets cap upside

Gold stages a modest recovery from the vicinity of a three-month low, trading above the $4,000 psychological mark through Monday’s Asian session amid a softer US Dollar. US President Donald Trump has ruled out immediate military action against Iran, triggering a modest pullback in crude oil prices. Furthermore, Federal Reserve officials have signaled no urgency to raise interest rates immediately.

Cardano's derivatives and on-chain data confirm bears in control

Cardano extends losses, trading below $0.202 after three consecutive weeks of more than 20% declines since early October. Selling pressure continues to build as weakening derivatives metrics, bearish on-chain signals and a deteriorating technical outlook point to further downside risks. Derivatives data shows a bearish bias for Cardano.

Flight to safety meets a high earnings bar as central bank week begins

Treasuries rallied again, equities are struggling, and central banks and earnings are on the horizon. Last week, US Treasuries rallied for a second consecutive week. This pushed 10s and 30s to 5% and 5.33%, respectively, flattening the curve even as Brent crude rallied about 7% to within striking distance of March peaks at US$119.50, and tech stocks posted a second straight week of losses.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.