WTI Price Forecast: Tests 50-day EMA support near $65.50

• WTI price tests the immediate support at the 50-day EMA of $65.65.
• The 14-day Relative Strength Index remains below the 50 mark, indicating that bearish momentum persists.
• The nine-day EMA at $66.39 may act as a primary barrier.

West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $65.80 per barrel during the European hours on Tuesday. The technical analysis of the daily chart suggests the price of the precious metal remains within a rectangular pattern, indicating a consolidation phase.

The 14-day Relative Strength Index (RSI) remains below the 50 level, suggesting a bearish bias is in play. Additionally, the Silver price is trading below the nine-day Exponential Moving Average (EMA), indicating potential weakening of short-term price momentum.

On the downside, the WTI price is testing the immediate support at the 50-day EMA of $65.65. A break below this level would weaken the medium-term price momentum and prompt the WTI price to approach the lower boundary of the rectangle around the psychological level of $64.00. A break below the rectangle would cause the emergence of the bearish bias and put downward pressure on the Oil price to navigate the region around the three-month low at $55.14, recorded on May 5.

The WTI price may find initial resistance around the nine-day EMA at $66.39. A break above the latter would improve the short-term price momentum and support the Oil price to approach the upper boundary of the rectangle around $68.50. A break above the rectangle would give rise to bullish bias and support the crude price to test the six-month high of $76.74, which was reached on June 23.

WTI: Daily Chart