WTI Price Analysis: Trapped between key hourly averages ahead of API data
- WTI stalls the bounce above $40 as hourly RSI turns flat.
- A firm break above $40.50 is needed for the further upside.
- 200-HMA guards the downside ahead of the API crude stocks data.
WTI (futures on NYMEX) consolidates the bounce above the $40 barrier, having regained the 21-hourly Simple Moving Averages (HMA), currently at $39.75.
The US oil traders have turned cautious ahead of the American Petroleum Institute’s (API) weekly crude stockpiles data release.
The rebound in the black gold faltered below the critical $40.50 barrier, which is the confluence of the 100 and 50-HMAs.
A break above which doors will open towards the $41 mark. The next upside target for the bulls will be the Monday high of $41.51.
To the downside, the immediate cushion is seen at the previous resistance now support at 21-HMA. A failure to resist above the latter could call for a test of the horizontal 200-HMA at $39.16.
The hourly Relative Strength Index (RSI) has turned south, suggesting that the recovery momentum appears to have fizzled out.
WTI hourly chart
WTI additional levels
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.
