WTI price drifts lower to near $65.10 in Wednesday’s early European session.
Negative view of the WTI prevails below the 100-day EMA, but consolidation cannot be ruled out with a neutral RSI indicator.
The initial support level is seen at $63.40; the immediate resistance level to watch is $65.55.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $65.10 during the early European trading hours on Wednesday. The WTI loses ground amid a firmer US dollar (USD), and US President Donald Trump’s doubling of the existing 25% duty on Indian exports raises fears of slowing trade and weaker global demand. Oil traders await the American Petroleum Institute (API) weekly crude oil stock, which is due later on Wednesday.
Technically, the bearish outlook of WTI remains in play as the price remains capped below the key 100-day Exponential Moving Average (EMA) on the daily chart. However, further consolidation or temporary recovery cannot be ruled out, with the 14-day Relative Strength Index (RSI) hovering around the midline. This suggests the neutral momentum in the near term.
The low of September 1 at $63.40 acts as an initial support level for the black gold. A decisive break below the mentioned level could expose $62.80, the low of August 27. Further south, the crucial contention level is seen at $61.50, the lower limit of the Bollinger Band.
On the bright side, the first upside barrier for WTI to watch is $65.55, the 100-day EMA. Sustained trading above this level could pave the way to $67.64, the high of July 11. Extended gains could see the next hurdle at $69.86, the high of July 31.
WTI daily chart
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