WTI Crude Oil consolidates between key levels as traders await economic cues

• WTI remains range-bound with prices trading between the 20 and 50-day SMAs.
• Oil holds above $62, but a break lower could spark a drop toward $60.
• Momentum stalls as traders await direction from broader market catalysts.

Crude oil prices remain under pressure on Tuesday, weighed by a combination of rising global supply and persistent economic uncertainty. 

West Texas Intermediate (WTI), the US crude oil benchmark sourced from Texas and surrounding regions, currently remains subdued, trading within a narrow range of technical confluence as it struggles to recover from the broader downtrend that commenced following the January inauguration of US President Donald Trump.

Although prices are relatively stable today, prevailing macroeconomic headwinds and continued supply-side pressures are curbing bullish momentum and maintaining a cautious tone across the energy markets.

WTI Crude Oil trades in a tight range as the market awaits fresh drivers

WTI crude oil remains in a consolidation phase, trading within a broader range defined by two key Fibonacci retracement levels stemming from the January-April decline. This zone has created a technical buffer, containing both upside and downside price action while signaling broader market indecision.

As short-term momentum continues to face resistance, which is being influenced by structural and macroeconomic headwinds, the 20-day and 50-day Simple Moving Averages (SMA) are currently acting as dynamic zones of support and resistance, further compressing price movement and reinforcing the prevailing lack of directional conviction.

At the time of writing, WTI continues to hold above the psychological support level of $62.00. However, a decisive break below this threshold could open the path toward the 23.60% Fibonacci retracement of the YTD move at $60.588, which closely aligns with the 20-day SMA at $60.644. A breach of this zone may invite renewed selling pressure and a potential retest of the $60.00 handle.

From a momentum perspective, the Relative Strength Index (RSI) remains slightly above the neutral 50 threshold, indicating a cautious market tone as traders await further clarity from global fundamentals or geopolitical developments.

If economic conditions stabilize or oil demand forecasts strengthen, WTI could regain upward momentum, allowing bulls to aim for a retest of the 50-day SMA at $63.612 and toward the 38.20% Fibonacci retracement level at $64.179, a zone that marks a critical short-term resistance threshold.

WTI Crude Oil daily chart