WTI Oil – Bulls Maintain Control Amid Escalating Supply Disruption Fears

WTI oil maintains a firm stance, trading just below its fresh multi-month peak at $67.27, with Monday’s long upper shadow having only a limited dampening effect. The formation resulted from a brief spike to a new high followed by a swift pullback, yet it has not materially altered the broader bullish structure.

In the near term, price action revolves around the recently breached pivotal barrier at $66.30, which marks the 50% Fibonacci retracement of the $77.73/$54.87 bearish leg. Waning upside momentum and an overbought stochastic on the daily chart are tempering bullish enthusiasm and capping immediate gains. Nevertheless, the broader technical outlook remains constructive, as moving averages stay in a fully bullish configuration, reinforced by several recent bullish cross formations.

Geopolitical developments continue to act as the dominant catalyst for oil. Mounting concerns that tensions between the United States and Iran could escalate at any moment are heightening expectations of potential supply disruptions, thereby underpinning prices and preserving the market’s upward bias.

A sustained move above $66.30 would pave the way for a renewed challenge of the weekly cloud top at $67.23. A decisive break beyond this level would generate an initial signal of bullish continuation, exposing next upside targets at $69.09 (61.8% Fibonacci retracement) and the key psychological barrier at $70.

On the downside, Monday’s low at $65.38 provides solid initial support, ahead of the converging and ascending 10- and 20-day moving averages at $64.70 and $64.38, respectively.

Res: 67.23; 68.00; 69.09; 70.00
Sup: 66.00; 65.38; 64.70; 64.38