Oil Price Forecast: WTI drops below $24.00, 50-HMA, weekly support line in spotlight

• WTI Futures on NYMEX fails to extend recoveries from 50-HMA.
• A seven-day-old ascending trend line adds to the support.
• Buyers look for entry beyond the immediate resistance line.

Having failed to extend the bounce off 50-HMA, WTI June Futures drop to $23.68, down 1.20% on a day, amid the initial few minutes of Thursday’s trading.

The oil benchmark currently declines towards 50-HMA level near $23.45 whereas an upward sloping trend line from April 28, currently near $22.90, could check bears afterward.

Should there be a clear downside past-$22.90, a horizontal line comprising Friday’s top near $20.50 can offer an intermediate halt before dragging the quote to 200-HMA, at $17.90 now.

Meanwhile, buyers will look for entries beyond an immediate falling trend line around $25.20.

In doing so, the monthly top near $26.10 will be the key to watch as a break of which pose a serious challenge to $30.00 round-figure.

WTI hourly chart

Trend: Further downside likely