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WTI Futures Tumble Below SMAs, Posting Negative Correction

WTI futures have come under renewed selling pressure, falling back below the short-term simple moving averages (SMAs) after the pullback off the 62.00 handle. Despite the latest down move, the commodity has not posted a lower low yet, which makes one hesitant to trust expect further declines for now.

In the 4-hour chart, the RSI suggests more decrease may be on the cards in the very short-term as the index is moving lower in the negative territory. The MACD is heading marginally lower above its trigger line in the bearish region.

If the selling interest persists, the next stop could come from the 59.00 and the 58.30 levels. Even lower, the 57.38 and the 55.30 supports could halt bearish movements.

On the flipside, if the bulls retake control, price advances may stall initially near the latest highs at 62.00. A potential upside violation of the aforementioned line would take the oil price towards the 200- and 40-period SMAs around 63.30, marginally below the 63.65 resistance. In such a case, the 65.40 barrier could act as a barrier to the upside as well.

Briefly, WTI crude oil futures have been in a declining mode over the last two weeks, and a rally above the SMAs could switch the outlook back to bullish.