Key Moments
- WTI trades back above $99.00 during the Asian session, holding near its highest level since May 21.
- Escalating tensions in the Middle East and stalled U.S.-Iran talks support a persistent geopolitical risk premium.
- Bullish technical signals remain intact while WTI holds above the high-$90s, with next key resistance near $107.23.
Geopolitics Support a Firm Bid in WTI
West Texas Intermediate (WTI) – the benchmark U.S. crude oil contract – attracts renewed buying interest after the prior session’s choppy trading and moves back above the $99.00 level during the Asian session on Tuesday. The contract is trading close to the peak reached last Friday, its highest since May 21, and appears positioned for additional gains as supply concerns intensify amid the ongoing Middle East crisis.
Recent developments in the region have reinforced the upside bias. Iran-backed Houthi forces in Yemen launched a large-scale missile and drone strike on a Saudi air base in Khamis Mushait on Monday. At the same time, Iranian Supreme National Security Council Secretary Mohsen Rezaei dismissed the possibility of near-term negotiations with the United States, stating that Tehran will not resume talks until its own conditions are fulfilled. These factors have reduced expectations for a swift diplomatic resolution to the conflict and are keeping a geopolitical risk premium embedded in crude prices, underpinning the constructive outlook for WTI.
Technical Picture: Bulls Retain Control
From a chart perspective, the recent break above the $91.00 horizontal barrier – which also coincided with the 61.8% Fibonacci retracement of the May-July downswing – served as a fresh catalyst for buyers. Momentum indicators remain supportive: the Relative Strength Index is hovering just under overbought territory around 69, while the Moving Average Convergence Divergence (MACD) indicator stays in positive territory. Together, these signals point to sustained upside pressure as long as prices hold above the high-$90s zone.
Key Levels: Support and Resistance
The next important resistance is located near the previous cycle peak around $107.23. That level may initially restrict further gains unless WTI can break above it convincingly. On the downside, several technical levels are expected to attract dip-buying interest and potentially limit corrective moves.
| Type | Level | Comment |
|---|---|---|
| Immediate resistance | $107.23 | Prior cycle high; key hurdle for extending the uptrend |
| Initial support | $98.57 | 78.6% Fibonacci retracement |
| Support | $91.78 | 61.8% Fibonacci retracement |
| Support | $87.01 | 50% Fibonacci retracement |
| Support (moving average) | $85.39 | 100-day simple moving average (SMA) |
| Deeper support | $82.24 | Fibonacci-based floor |
| Deeper support | $76.33 | Additional Fibonacci-based floor |
| Cycle low | $66.79 | Major downside reference level |
Any pullback toward these supports is likely to attract fresh buying interest and could remain contained while the broader bullish structure stays intact.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
