WTI Oil Opens Higher Amid Middle East Tensions, Faces Technical Resistance

WTI oil opened higher on Monday due to escalating supply concerns following the latest developments in the Middle East conflict, which threaten to deepen the crisis.

The price rebounded from last week’s low, retracing approximately 50% of Friday’s 2.4% drop, but remains within a narrow trading range.

Bearish technical indicators on the daily chart suggest limited potential for a stronger recovery. Key resistance levels at $78.31/39 (the base of the daily cloud and the 200DMA) are expected to cap any extended gains, maintaining the near-term bearish outlook.

Oil prices have been in a steep decline over the past three weeks and are on track for a bearish monthly close in July, reinforcing negative signals. Limited upticks are likely to offer better selling opportunities.

Strong negative momentum on the daily chart and moving averages in a full bearish setup (with the converging 10/200DMAs likely to form a death cross) support this view. A repeated close below $77.06 (the 61.8% Fibonacci retracement of $72.46 to $84.50) would confirm a bearish signal and expose the next targets at $75.30/00 (the 76.4% Fibonacci retracement and psychological level).

Only a decisive break above the 200DMA, which has capped the action for the past five days, would challenge the broader bearish trend and pave the way for a stronger correction.

Res: 77.67; 78.39; 78.59; 79.13
Sup: 77.06; 76.02; 75.30; 75.00