WTI Crude Holds Bullish Tone Despite Pullback Below $79

Key Moments

WTI Eases From Recent Highs but Selling Pressure Remains Mild

West Texas Intermediate (WTI), the benchmark US Crude Oil contract, slipped during the Asian session on Thursday but stayed close to the highest levels seen in more than a month earlier this week. The contract was last changing hands slightly below the $79.00 handle, logging a decline of over 1% on the day as market participants awaited further clarity on developments in the Middle East before adding new long positions.

US-Iran Confrontation and Hormuz Closure Support Price Floor

The conflict between the United States and Iran has escalated since the start of the week, with US forces conducting new airstrikes on Iranian targets focused on missile and drone capabilities. In response, Tehran launched drone and missile attacks against US-linked military sites across the region.

Alongside this, a US naval blockade of Iranian ports and the shutdown of the Strait of Hormuz were described as factors likely to continue providing support for crude prices. Against this backdrop, the current environment was seen as limiting downside risk and favoring renewed buying interest on any sizable corrections.

Technical Outlook: Momentum Turns Constructive

From a chart perspective, WTI registered a breakout this week above the 23.6% Fibonacci retracement of the April-July decline and the 200-day Exponential Moving Average (EMA), developments that were viewed as important signals for bullish traders.

The Relative Strength Index (14) stood at 54.36, indicating a move into moderately positive territory. At the same time, the Moving Average Convergence Divergence (MACD) reading of 1.85 remained in positive territory. Taken together, these momentum gauges suggested that bullish momentum was rebuilding following the rebound from the $67.07 cycle low.

Key Technical Levels in Focus

On the downside, immediate support was identified at the 200-day EMA at $77.28, followed by the 23.6% Fibonacci retracement level at $76.59. A more pronounced reversal toward the $67.07 reference low was seen as a development that could undermine the prevailing bullish view.

On the upside, initial resistance was located at the 38.2% Fibonacci retracement at $82.47. Above that, a more meaningful hurdle emerged near the 50.0% retracement around $87.23. A daily close beyond these barriers would open the way to the 61.8% retracement at $91.98, with additional upside objectives cited at $98.75 and $107.38.