Turns down after facing rejection once again above the 50 SMA

• WTI returns initial gains and turns negative during Thursday’s European session.
• Bearish RSI suggests further declines.
• The outcome of the OPEC + meeting is highly anticipated along with Powell’s speech.

WTI (NYMEX futures) falls back below the $ 61.00 level, shedding more than $ 1 from daily highs of $ 61.87, as bulls turn cautious ahead of the important outcome of the meeting of OPEC and its allies. (OPEC +) and the critical speech of the president of the Fed, Jerome Powell.

Black gold had moved higher earlier this Thursday on news that the alliance is likely to renew oil production cuts next month compared to previous expectations of increased production, in light of improving the global economic outlook.

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

From a technical perspective, the price of a barrel WTI has not been accepted above the 50 simple moving average on the four-hour chart, now at $ 61.61.

This has prompted the bears to regain control, sharply knocking prices down to test the strong support around the $ 60.65 region. At that level, the downward sloping 21-period SMA coincides with the upward sloping 100-period SMA.

The selling pressure is likely to intensify if black gold manages to close below the level mentioned above. Lower down, a test of the March low at $ 59.17 cannot be ruled out.

On the other hand, the WTI bulls need a sustained move above the 50-period SMA to extend the rally, with the next resistance seen at the round level of $ 62.00.

The RSI has crossed the midline and entered negative territory, suggesting that the decline looks more compelling for the remainder of the day.

WTI 4 hour chart

WTI technical levels