- The WTI extends the correction towards the $ 62.00 level.
- The 21-hour SMA could offer immediate support to the bulls.
- Fed Chairman Jerome Powell’s speech and API crude stock data will draw investors’ attention.
The WTI (futures on NYMEX) has posted new 13-month highs at $ 62.93 early in the Asian session Tuesday and since then it has been on a steady retreat, with the correction picking up the pace during the European session.
At the time of writing, WTI oil is trading at $ 62.31, still gaining 1.25% on the day. The bulls are targeting a weekly gain after ending last week negative.
The drop due to profit taking in black gold could also be aggravated by the worsening risk sentiment in the marketas European stock markets and US equity futures move lower. Nervousness at Fed Chairman Jerome Powell’s testimony appears to be weighing on risk appetite.
From a short-term technical perspective, black gold has found Support just above the bullishly sloping 21-hour moving average at $ 61.88.
The latest move to the downside could be attributed to the downward turn seen in the RSI as it fell from close to the 68 to 61 level.
The next support awaits near $ 61.50, at daily lows.
However, with the RSI still hovering above the midline, the bulls could regain control and push prices back to multi-month highs.
Markets will look forward to Powell’s testimony and weekly API crude stock data for new short-term trading opportunities.
WTI 1 hour chart
WTI technical levels
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