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.
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.