WTI Price Forecast: Retreats from one-week high; $63.00 holds the key for bullish traders

• WTI attracts some sellers on Thursday and snaps a three-day winning streak to a one-week high.

• The technical setup backs the case for the emergence of dip-buyers near the $63.00 confluence.

• A sustained strength and acceptance above the $64.00 mark is needed to reaffirm positive bias.

West Texas Intermediate (WTI) US Crude Oil prices drift lower during the Asian session on Thursday and for now, seem to have snapped a three-day winning streak to a one-week high, around the $63.75-$63.80 region, touched the previous day. The black liquid currently trades around the $63.30-$63.25 zone, down 0.35% for the day.

The Energy Information Administration (EIA) reported an unexpected rise in US crude inventories on Wednesday, which, along with falling producer prices and a slowing labour market, points to softening fuel demand. Furthermore, the OPEC+ decision to raise production from October turned out to be a key factor exerting some pressure on Crude Oil prices. However, geopolitical risks stemming from the protracted Russia-Ukraine war and conflicts in the Middle East could help limit losses for the commodity.

From a technical perspective, the recent recovery from a three-month low, touched earlier this month, has been along an upward trend line. This, along with the previous day's breakout through the 200-hour Exponential Moving Average (EMA) and positive oscillators on hourly charts, backs the case for the emergence of dip-buying around Crude Oil prices. Hence, any further slide is more likely to find decent support near the 200-hour EMA and ascending trend-line confluence, around the $63.00 mark.

The said handle should act as a key pivotal point, which, if broken decisively, will negate the constructive outlook and drag Crude Oil prices to the next relevant support near the $62.65 region. Given that technical indicators on the daily chart are holding in negative territory, the black liquid could weaken further towards testing sub-$62.00 levels before eventually dropping to the multi-month low, around the $61.20 area, touched last Friday.

On the flip side, the $63.75-$63.80 region, or a one-week low set on Wednesday, could act as an immediate hurdle ahead of the $64.00 mark. A sustained strength beyond the latter would set the stage for a move towards the $64.50-$64.55 intermediate resistance en route to the $65.00 psychological mark. The momentum could extend further and eventually lift the black liquid to the monthly swing high, around the $65.75 zone.

WTI 1-hour chart