WTI Crude Oil trades above $61.00 with prices consolidating in a tight range

• WTI reclaims $61.00 to trade in a tight range between the 10-day and 20-day SMA.
• Oil prices remain under pressure amid an uncertain economic backdrop, but technical levels continue to contribute to the short-term price action.
• With investors closely monitoring the global growth outlook, key psychological levels provide additional barriers of support and resistance between the $60.00 - 64.00 price range.

Crude oil prices have rebounded on Friday, allowing prices to erase Thursday's losses.

At the time of writing, WTI crude oil is trading 1.20% higher on the day, moving above the previous psychological resistance that has turned into support at 61.000.

After experiencing two consecutive days of losses, the failure to drop below the 23.6% Fibonacci retracement level from the January-April year-to-date decline at 60.588 has provided some temporary relief for WTI oil bullish traders. 

Currently, the 20-day Simple Moving Average (SMA) is positioned just below at 60.419, while the 10-day SMA offers immediate resistance near 61.805. Prices are currently fluctuating within a narrow range defined by these SMA levels, with the Relative Strength Index (RSI) reading at 49.00, indicating neutral momentum.

WTI Crude Oil daily chart

With various fundamental factors influencing oil prices, technical challenges exist on both the upside and downside. 

For the uptrend to gain momentum, a strong bullish movement above the 10-day SMA and a breakout above the next psychological barrier at 62.000 are necessary. If that level is surpassed, the 50-day SMA at 63.270 could pave the way for a test of the 38.2% retracement level for the year-to-date decline, which stands at 64.179.

Conversely, if sellers manage to push prices below 60.588 and the 20-day SMA, the April 10 low at 58.376 and the year-to-date low of 54.785 may come into play.