WTI Crude Oil Tests Key Support at 50-Day EMA Near $65.50 as Bearish Momentum Builds

WTI Crude Oil Tests Key Support at 50-Day EMA Near $65.50 as Bearish Momentum Builds

The West Texas Intermediate (WTI) Crude Oil price is trading near $65.80 per barrel during Tuesday's European session, marking its second consecutive daily loss. The commodity is approaching a critical technical support at the 50-day Exponential Moving Average (EMA) around $65.65, raising concerns about further downside pressure.

Bearish Technical Signals Persist

The daily chart reveals a consolidating price pattern within a rectangular range, with WTI struggling to break out. The 14-day Relative Strength Index (RSI) remains below the neutral 50 level, a signal that bearish momentum is still intact.

In addition, the WTI price remains under the nine-day EMA at $66.39, a level that is now acting as a short-term resistance. Unless this is broken, short-term price action is expected to remain subdued.

Downside Risks Increase if Support Breaks

The immediate support lies at the 50-day EMA ($65.65). A confirmed breakdown below this level could trigger a larger bearish move, with the next support at the psychological level of $64.00, which marks the lower boundary of the consolidation rectangle.

If this rectangle support fails to hold, WTI could fall toward the three-month low of $55.14, last seen on May 5, reintroducing broader market fears of oversupply and weakening demand.

Key Technical Levels to Watch

• Resistance: $66.39 (9-day EMA), $67.50 (rectangle top)
• Support: $65.65 (50-day EMA), $64.00 (range bottom), $55.14 (May low)

Outlook

WTI's failure to reclaim key short-term EMAs and a sub-50 RSI reading indicate that downward momentum may persist unless there is a strong catalyst to lift prices. Traders should closely monitor the $65.65 level for signs of a breakdown or rebound.

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