WTI Price Forecast: Crude Oil challenges 50-day SMA as US sanctions spark fresh rally

• WTI extends its rebound for the third consecutive day, lifted by renewed supply concerns following the US sanctions on Rosneft and Lukoil.
• WTI hovers near a key resistance area at $61.50-$61.70, coinciding with the 50-day SMA and former support-turned-resistance.
• Momentum turns constructive, as RSI rebounds from oversold levels and ADX points to a strengthening short-term trend.

West Texas Intermediate (WTI) surges on Thursday, extending its rally for the third consecutive day after the United States (US) imposes sanctions on Russian energy majors Rosneft and Lukoil, stoking supply concerns.

At the time of writing, WTI trades near $61.66, up nearly 4.0%, recovering strongly after sliding to five-month lows earlier this week.

From a technical perspective, the latest leg higher has shifted the near-term outlook from bearish to neutral-bullish, as prices challenge a key resistance zone around $61.50-$61.70, where the 50-day Simple Moving Average (SMA) aligns with prior horizontal support that has turned into resistance.

The zone is currently capping the upside, but a decisive daily close above this barrier would confirm buyers back in control, paving the way toward the 100-day SMA near $64.20 as the next key resistance level.

On the downside, immediate support is seen at Thursday's low near $59.60, followed by $57.00 and the May swing low around $55.00.

Momentum indicators have turned constructive. The Relative Strength Index (RSI) sits at 54.6, rebounding from near-oversold territory, signaling improving bullish momentum. Meanwhile, the Average Directional Index (ADX) at 27.4 suggests a strengthening trend but not yet a fully established uptrend.