WTI Price Forecast: Bulls retain control near 38.2% Fibo.; move beyond $83.00 awaited
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts buyers for the third straight day and trades just below the $83.00 mark during the Asian session on Wednesday, close to a nearly two-week high set the previous day.
WTI Crude Oil prices have been on an upward trend for the past three days, trading near $83.00 during the Asian session on Wednesday. Iran's Supreme Leader Moghtaba Khamenei's advisor warned that the Strait of Hormuz would remain closed until the US fulfills Tehran's demands. Additionally, strikes by Iran-backed Houthis in the Red Sea have raised concerns about potential supply disruptions in the West Asia region, which has further fueled demand for the commodity.
From a technical standpoint, WTI Crude Oil is trading above the 38.2% Fibonacci retracement level of the July-August decline and maintains a bullish bias. The Relative Strength Index (14) stands at 64.63, indicating positive momentum without reaching overbought territory. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows the line in a positive position, reinforcing the bullish outlook.
With these factors in mind, there is a possibility of WTI Crude Oil moving beyond the $83.00 level and testing the next significant hurdle at the 50% retracement level of $82.93. Should the price break through this level, it could continue to climb towards the 61.8% retracement at $85.13, followed by the 78.6% retracement at $88.27 and the prior cycle high at $92.26.
On the downside, the first layer of support lies at the 38.2% Fibonacci retracement level at $80.73, followed by the 23.6% level at $78.00. If a deeper correction occurs, the $73.60 swing low could serve as a more distant structural support level.
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