WTI Price Forecast: Sits near three-week high, below $85.00 as bulls eye 100-SMA breakout
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – touches a nearly three-week high during the Asian session on Wednesday, though it struggles to build on the momentum beyond the $85.00 mark.
WTI Crude Oil prices rose to a near three-week peak of $85.00 in the Asian trading session on Wednesday, but were unable to sustain the momentum beyond that level. The positive sentiment continues for the fourth consecutive day, with crude oil potentially gaining further ground amid ongoing geopolitical tensions between the US and Iran.
President Donald Trump recently posted a map on social media, claiming the Strait of Hormuz was now under US control due to a naval blockade of Iranian ports. In response, Iranian Parliament Speaker Mohammad Bagher Ghalibaf asserted that the strategic waterway would remain closed until the US adheres to the June memorandum of understanding.
This ongoing standoff maintains a war-risk premium and supports a near-term bullish outlook for WTI prices.
From a technical standpoint, WTI is trading above the 38.2% Fibonacci retracement level of the July-August decline. The Relative Strength Index (RSI) stands at 56.90, while the Moving Average Convergence Divergence (MACD) is at 0.47, both indicating mild constructive momentum. However, the broader structure suggests limited upside potential, with price currently below the 100-day Simple Moving Average (SMA) resistance of $86.09 and the 50.0% retracement level at $87.06.
A bullish trigger would be the reclamation of the 61.8% Fibonacci level at $91.73. Should the market retreat, support can be found at the 38.2% Fibonacci level at $82.38, followed by deeper structural support at $76.60 and $67.25, where increased buying interest could be expected during a larger pullback.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
