WTI Price Forecast: Bulls have the upper hand while above $62.00/200-period SMA on H4

• WTI drifts lower on Wednesday and snaps a four-day winning streak to over a two-week high.
• The technical setup favors bulls and supports prospects for the emergence of some dip-buyers.
• A convincing break below the $61.00 round figure is needed to negate the constructive outlook.

West Texas Intermediate (WTI) US Crude Oil prices remain depressed through the early European session on Wednesday and for now, seem to have snapped a four-day winning streak to mid-$63.00s, or over a two-week high touched the previous day. The commodity currently trades around the $62.85 region, down nearly 0.60% for the day, though the intraday downtick lacks bearish conviction.

From a technical perspective, the overnight breakout and close above the 200-period Simple Moving Average (SMA) on the 4-hour chart was seen as a key trigger for bullish traders. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for the emergence of some dip-buyers near the said breakpoint, around the $62.00 mark, warranting some caution for bearish traders.

Some follow-through selling, however, could pave the way for deeper losses towards the $61.30 intermediate support en route to the $61.00 round figure. The next relevant support is pegged near the $60.40 region, below which Crude Oil prices could test the $60.00 psychological mark. The latter should act as a pivotal point, which, if broken, will suggest that an over one-week-old uptrend has run out of steam.

On the flip side, bulls might now wait for a move beyond the $63.45-$63.50 region, or over a two-week high set on Tuesday. Oil prices might then accelerate the positive move towards reclaiming the $64.00 mark and then test the $64.65-$64.70 horizontal barrier. This is followed by the $65.00 psychological mark, which, if cleared decisively, should pave the way for a further near-term appreciating move.

WTI 4-hour chart