WTI Price Forecast: Bulls await sustained move above $78.00 amid supply concerns

West Texas Intermediate (WTI) prices opened the week on a positive note, supported by the US-Iran standoff regarding the Strait of Hormuz. Oil prices hit a four-day high during the Asian session, and traders are now watching for a sustained move above the $78.00 level before positioning for further gains. Iran and Oman are reportedly close to an agreement on a safe shipping route through the Strait, though Iran insists on the removal of US sanctions and compensation for war damage.

Meanwhile, Houthi rebels in Yemen reported an attack on Saudi Arabia's Jazan refinery, adding to geopolitical risks and supporting crude oil prices. From a technical standpoint, WTI prices show a modest bullish bias above the 200-period SMA at $76.80 and the 61.8% Fibonacci retracement level at $76.42. The RSI is slightly above the midline around 54, and the MACD remains in positive territory, indicating upward momentum but not yet excessive.

However, a further move up could face resistance at the 50% retracement at $79.43, with additional barriers at the 38.2% level near $82.43 and the 23.6% retracement around $86.15. Support for the current bullish outlook is offered by the 200-period SMA at $76.80, followed by the 61.8% retracement at $76.42. Should prices break below this support, it could weaken the positive trend and expose to greater corrective risks.