WTI Price Analysis: Turns south after rejection at $108.00
- WTI price is correcting from almost three-week highs of $107.96.
- A stronger US dollar is checking the upside in the black gold.
- A test of the 21-DMA support at $103.58 appears inevitable.
WTI (NYMEX futures) is extending the correction from three-week highs of $107.96 reached earlier in the Asian session on Easter Monday.
The unrelenting strength in the US dollar could be associated with the downtick in the WTI price, as it snaps a three-day uptrend.
Rising concerns over the demand for oil and its products from the world’s second-biggest oil consumer, China, collaborated with the downside. China continues to battle covid outbreaks, with total lockdowns imposed in the nation’s major cities.
Fundamentally, the black gold remains supported amid a protracted war between Russia and Ukraine, with a likely European Union (EU) embargo on the Russian gas and oil sector in the coming days.
From a near-term technical perspective, the corrective pullback in WTI aims for the upward-sloping 21-Daily Moving Average (DMA) at $103.58. Although bulls may find some support at $105.00 and $104.50 beforehand.
The 14-day Relative Strength Index (RSI) is turning south, justifying the renewed weakness in the US oil. The leading indicator, however, holds above the midline, which keeps bulls hopeful.
On the other side, if bulls regain momentum, then the multi-week top near $108.00 could be retested.
The next significant upside target will be then envisioned at the $110.00 round level.
WTI: Daily chart
WTI: Additional levels to watch