WTI Seeks To Test 21-Day SMA Amid Possible Return Of Iranian Supply

• WTI sellers scrambling to regain control Thursday, focus is on 21-day SMA support.
• The price of WTI is affected by a likely return of Iranian supply, as nuclear talks progress.
• WTI needs to find acceptance above $ 66.00 to revive the upside momentum.

WTI (NYMEX futures) is hovering in the region of daily lows near $ 65.50, feeling the pull of gravity amid concerns about rising supply if sanctions on Iranian oil exports are lifted amid of progress in nuclear talks.

Meanwhile, concerns about oil demand from India, the world’s third-largest oil consumer, continue to weigh on black gold. In addition, the WTI is also further affected by expectations of the Fed’s reduction in bond purchases, which benefits the US dollar and weighs on the prices of dollar-denominated commodities, such as oil.

However, the drop appears to be supported amid the arrival of the summer travel season in the US and Europe, which could likely increase demand for oil.

From a short-term technical perspective, risks remain sloping to the downside as oil bears look to test the 21-day moving average at $ 64.91.

Defending this support is critical for the bulls, as a break below this region could trigger a sharp decline towards the 50-day SMA at $ 62.62.

However, with the 14-day RSI still above the center line, support at the 21 SMA is likely to hold.

On the other hand, WTI needs to find acceptance above recent highs near $ 66.40 to make a significant recovery.

Higher up, resistance from a three-month ascending trend line at $ 67.41 is expected to act as a stiff barrier.

WTI gráfico diary

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