WTI Oil Daily Forecast West Texas Intermediate (WTI) crude oil prices are now recovering after falling to a multi-year low of $55.15 on April 9. While this rapid recovery has given market participants some hope, the upward momentum does not yet constitute conclusive evidence of a trend reversal. Prices recently reached a strong resistance level at $65.40, a level that acted as stable support in early March. The fact that this barrier has not been broken suggests that a sense of pessimism still lingers in the background. Despite the recent surge, WTI crude oil prices remain below $67.00. This level represents the lower bound of a broad trading range that covered much of the price action from September through early April. Remaining below this area somewhat reduces the overall technical outlook. In short, unless a decisive break above this area occurs, the current price action is merely a corrective phase of a larger downtrend. Analyzing technical indicators can provide a deeper understanding of the internal market dynamics. The Relative Strength Index (RSI), a momentum indicator, has been rising in recent sessions, but the upside has stalled at the 50 level. These declines below the equilibrium level reflect the fact that the market still lacks the confidence needed for growth. The Moving Average Convergence/Divergence (MACD) indicator is also showing early signs of a downtrend, with a strong crossover above its signal line but remaining in negative territory. The continued weakness in momentum indicators supports the view that the recent recovery may not be sustainable without additional upside catalysts. If sellers regain control of the market over the next few days, the price could retest the $57.25 area. A decline below this area would likely lead to a retest of the April low of $55.15. A strong break below this key support level would confirm the formation of a lower price on the charts, reinforcing bearish sentiment and potentially opening some length to the $51.50 area. The latter level could act as strong support and become a price magnet during the first few months of 2021. Meanwhile, the bulls are not out of the game completely. If the price rises above $67.00, the outlook could become neutral, at least in the short term. This move indicates the market's desire to return to its previous trading range and could pave the way for a deeper recovery. However, for a more convincing and strong reversal, a strong move above $72.50 would be necessary. This level represents a key turning point where the previous rally stalled, and a breakout could trigger a wave of new buying interest. In this case, the next immediate resistance would be at $75.80. A break above this barrier could enable a rise to $80.50, the psychological level that peaked on January 15. In short, although oil prices have recovered significantly from their recent lows, the technical scenario is favorable for the current decline. The price fell below $67.00 and recovered to $65.40, confirming our view that the downside risk remains. Momentum indicators reflect uncertainty about the market's recovery and highlight the fragility of the recent recovery. Therefore, unless key resistance levels are consistently broken, the downtrend is likely to continue. Traders and investors should closely monitor the above-mentioned technical interval, as it may determine the future direction of WTI crude oil prices.
