WTI Price Analysis: Trapped between key hourly averages ahead of API data

• WTI stalls the bounce above $40 as hourly RSI turns flat.
• A firm break above $40.50 is needed for the further upside.
• 200-HMA guards the downside ahead of the API crude stocks data.

WTI (futures on NYMEX) consolidates the bounce above the $40 barrier, having regained the 21-hourly Simple Moving Averages (HMA), currently at $39.75.

The US oil traders have turned cautious ahead of the American Petroleum Institute’s (API) weekly crude stockpiles data release.

The rebound in the black gold faltered below the critical $40.50 barrier, which is the confluence of the 100 and 50-HMAs.

A break above which doors will open towards the $41 mark. The next upside target for the bulls will be the Monday high of $41.51.

To the downside, the immediate cushion is seen at the previous resistance now support at 21-HMA. A failure to resist above the latter could call for a test of the horizontal 200-HMA at $39.16.

The hourly Relative Strength Index (RSI) has turned south, suggesting that the recovery momentum appears to have fizzled out.

WTI hourly chart

WTI additional levels