US$ 50.49 likely to act as major hurdle for WTI crude oil

The WTI crude oil extended its northward movement for the seventh consecutive day on Tuesday, after forming a base around US$ 42.40. On the way up, oil prices managed to close above its short-term moving average, i.e. 21-day exponential moving average.  
   
The 14-period RSI on the daily chart is in the rising trajectory, which suggests bullish bias. According to MACD analysis, on the daily time frame, there is a centreline bullish crossover, which is a positive signal.  
   
Going ahead, the key area to watch for WTI crude oil is to US$ 50- US$ 50.49 as it is the 23.6 per cent Fibonacci retracement level of its entire downward move started from the high of October 3, 2018 to the low of December 24,  2018. A follow-through move above this level would lead to an extension of the pull-back toward US$ 55.  
   
While on the downside, 21-day EMA is likely to act as immediate support, which is currently quoting around US$ 47.94. A close below this level will suggest that the short-sellers are still in control.