• WTI edges higher as renewed hostilities between the US and Iran keep geopolitical risks in play.
• The lack of follow-through buying warrants caution before positioning for any meaningful gains.
• A sustained break below the 100-day SMA is needed to back the case for further depreciation.

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – struggles to capitalize on a modest Asian session uptick and currently trades just below mid-$87.00s, nearly unchanged for the day.

Renewed hostilities between the US and Iran temper hopes for a deal to end the over three-month-old war. This, along with the effective closure of the Strait of Hormuz, acts as a tailwind for Crude Oil prices. The commodity remains close to a nearly two-month low touched on Tuesday as traders assess fresh developments surrounding the Middle East crisis and keenly await the release of the US consumer inflation figures.

The black liquid holds above the 100-day Simple Moving Average (SMA), suggesting that the broader near-term tone remains constructive despite the recent pullback. However, soft momentum indicators hint that recovery attempts may struggle to gain strong traction without fresh buying interest. In fact, the Relative Strength Index is near 42, and the Moving Average Convergence Divergence (MACD) is in negative territory.

Hence, it will be prudent to wait for a sustained break and acceptance below the 100-day SMA at $84.72 before positioning for an extension of the recent downfall from the vicinity of the $100 psychological mark. A clear break beneath the said support would likely expose deeper corrective potential toward sub-$79.00 levels, or the April swing low.

On the topside, the immediate strong resistance is defined primarily by recent price extremes, with the psychological $90 handle followed by the late-September highs near $103 acting as reference points for any sustained rebound.

(The technical analysis of this story was written with the help of an AI tool.)

WTI daily chart

Octalas AI

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