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WTI falls after rejection at 200-day SMA near $73.35
WTI was around $71.75, down 3.7% on the day, as renewed US-Iran tensions are reassessed and traders watch key levels $73.35, $67.00, and $86.91.
WTI crude eased on Thursday, giving back the prior day’s gains as traders reassessed supply risks tied to renewed US-Iran tensions, according to FXStreet. At the time of writing, WTI traded near $71.75, down 3.7% for the day.
Markets had surged earlier in the week after the two countries exchanged military strikes, with fears returning that shipping through the Strait of Hormuz could be disrupted. FXStreet notes that traders appear to view the latest flare-up as unlikely to escalate into a full-blown war and expect shipping through the strait to continue recovering.
On the technical side, the selloff followed rejection near the 200-day Simple Moving Average at about $73.35, which is flagged as near-term resistance. WTI remains well below the 100-day SMA near $86.91, while the RSI rebounded to about 40.2 but stayed under the neutral 50 level, and the MACD turned positive but is still capped by overhead resistance.
FXStreet highlights the next upside trigger as a break above $73.35, which could open a path toward the $80.00 level and then the 100-day SMA near $86.91. On the downside, support is seen around $67.00, and a break below that level could shift attention toward the $60.00 area.
Latest closeWTI crude $74.03 ▲5.1%