WTI Climbs Above $74 as Geopolitics Drive Gains

Key Moments

Geopolitical Risk Supports Early-Week Gains

West Texas Intermediate (WTI), the US crude oil benchmark, extends its initial bullish gap at the start of the new week and trades above $74.00 during the Asian session on Monday. The move is supported by a further escalation in tensions between the United States and Iran, together with the closure of the Strait of Hormuz, which introduces additional uncertainty into the energy complex and lifts crude prices.

Technical Picture: Bearish Bias Persists Below Key Averages

From a chart perspective, WTI continues to show a negative short-term bias while it remains capped beneath the 200-day Exponential Moving Average (EMA) and the 23.6% Fibonacci retracement of the April-July decline. At the same time, the Moving Average Convergence Divergence (MACD) indicator has turned positive, indicating that upside momentum is starting to rebuild.

However, the Relative Strength Index (RSI) is hovering near 47, still below the neutral 50 line. This configuration points to recovery attempts taking place within a constrained structure rather than signaling a definitive shift into a sustained uptrend.

Key Technical Levels: Resistance and Support Map

Further price appreciation is expected to encounter initial resistance around the 23.6% Fibonacci retracement near $76.58. Just above that level, the 200-day EMA, currently around $77.19, forms part of the first important supply zone that buyers would need to clear in order to alleviate prevailing downside pressure.

Beyond that initial band, additional resistance is located at the 38.2% retracement around $82.45, followed by the 50% retracement close to $87.20 and the 61.8% level near $91.95. A higher barrier is seen at $98.71.

On the downside, the primary structural support is aligned with the previous swing low near $67.08. A decisive break below that level would leave the door open for a continuation of the broader bearish phase.