WTI Price Forecast: Climbs above $86.00 as 100-day SMA breakout comes into play
WTI gains follow-through positive traction on Tuesday as US-Iran tensions fuel supply concerns.
The technical setup favors bulls and backs the case for a further near-term appreciating move.
A convincing break below the 38.2% Fibo. near $82.60 is needed to negate the positive outlook.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts buyers for the second straight day on Tuesday as escalating US-Iran tensions and the standoff over the Strait of Hormuz continue to fuel supply concerns. The commodity is now looking to build on the momentum beyond the 100-day Simple Moving Average (SMA) and the $86.00 mark amid the supportive fundamental backdrop.
US forces struck two rocket launchers on Iran’s Larak Island in the Strait of Hormuz on Sunday. This was the first US strike since late July, prompting an Iranian counterattack on American air bases in Jordan. Moreover, US President Donald Trump warned that further military action remained possible and threatened to hit Iran "hard". This keeps the geopolitical risk premium in play, which might continue to support crude oil prices.
From a technical perspective, the black liquid holds comfortably above the 38.2% Fibo. retracement at $82.60. Moreover, the Moving Average Convergence Divergence (MACD) stays marginally positive, and the Relative Strength Index (RSI) near 58 suggests underlying buying interest rather than exhaustion. This suggests that buyers still control the broader trend despite the recent consolidation below higher retracement levels.
Meanwhile, immediate resistance is pegged at the 50.0% retracement at $87.30, followed by a more substantial barrier at the 61.8% level at $92.01. A daily close above $87.30 would open the way for a test of $98.71 and $107.25 higher retracement hurdles. On the downside, immediate support is provided by the 100-day SMA at $85.07, with additional structural cushions at the 38.2% retracement at $82.60 and deeper levels at $76.77 and $67.36 should a broader correction unfold.
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