WTI Price Analysis: Oil prices' recovery limited below previous support at $37.18

• WTI oil rebound from $34.40 has been capped below the previous support level at $37.18.
• Crude prices have retreated more than 2% turning negative on the day as risk appetite fades.

WTI oil recovery attempt from $34.40 lows earlier this week has been capped on Friday at $37 area before giving away more than 2% to levels sub $36.

The price of front-month crude oil contracts has been unable to break through the previous support level which has turned resistance. WTI futures are giving away gains on Friday’s US session, turning negative on daily charts, as the risk-on sentiment seen earlier fades away.

On the downside, immediate support lies at $34.50 (Jun 1, 11 lows), a clear break below this level might increase negative pressure, opening the path towards May 29 low at $32.39 before 22 May low at $30.70.

On the upside, the pair should return above the mentioned support level at around $37.10 to regain some upside traction and aim towards 38.50 and finally to June’s peak, at $40.40.

WTI Oil 4-hour chart