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WTI Price Analysis: SMA 50 in 4 hours defends the drop before the API

  • WTI price is reversing a drop to 108.00 amid risk aversion.
  • Holding above the 50 SMA on the 4-hour chart is critical for oil bulls.
  • The RSI defends the midline and supports the bulls ahead of the API data.

The WTI (NYMEX futures) is attempting a bounce back above the $109.00 levelafter finding strong buying just above $108.00 in the last few hours.

US oil rebound occurs even though risk sentiment remains sour amid a revival of global growth fears, in the wake of disappointing UK and eurozone manufacturing and services PMI reports for May.

Resumption of US Dollar Sell-off Could Favor Black Gold’s Latest Rally, while the markets remain hopeful that there will be a further reduction in US crude oil reserves. The American Petroleum Institute (API) will release its weekly crude stock change report towards the close in New York at 20:30 GMT.

From a short-term technical point of view, the rising 50 SMA on the 4-hour chart at $108.88 has come to the rescue of the bulls as they have managed to regain control above it.

WTI traders are now watching for a sustained move above the horizontal 21 SMA at $109.10 to consolidate the recovery momentum.

Acceptance above that level will prompt the bulls to retest the level of the bulls. $110.00. Above, the previous day’s high in $111.25 could be challenged by bulls,

The 14-day RSI is rising just above the mid-line, which suggests that the recovery may have some way to go.

WTI 4 hour chart

wti

On the other hand, a four-hour candlestick close below the 50 SMA will reignite bearish interest. WTI will resume its downward correction towards daily lows of $108.04 one more time.

The next major bearish target is at the rising 200 SMA at $106.63.

WTI additional levels

WTI US OIL

Panorama
Last Price Today 109.68
Today’s Daily Change -0.38
Today’s Daily Change % -0.35
Today’s Daily Opening 110.06
Trends
20 Daily SMA 105.84
50 Daily SMA 103.84
100 Daily SMA 97.28
200 Daily SMA 85.76
levels
Previous Daily High 111.25
Previous Daily Minimum 108.6
Previous Maximum Weekly 113.18
Previous Weekly Minimum 102.99
Monthly Prior Maximum 109.13
Previous Monthly Minimum 92.65
Daily Fibonacci 38.2% 110.24
Daily Fibonacci 61.8% 109.61
Daily Pivot Point S1 108.69
Daily Pivot Point S2 107.32
Daily Pivot Point S3 106.03
Daily Pivot Point R1 111.34
Daily Pivot Point R2 112.62
Daily Pivot Point R3 113.99

Source: Fx Street

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