WTI Eyes Fresh Highs After Buyers Defend Key Support Zone

Summary:

WTI crude remains supported after defending the $82.20 demand zone, with the formation of higher highs and higher lows reinforcing the bullish outlook.

Buy WTI

End Time

CLOSED

82.904

ENTRY

92.000

TGT

78.400

78.813 -5.953 -7.02%

517

Points

Profit

78.400

83.421

CLOSING

82.904

ENTRY

92.000

TGT

Oil prices extended their rally on Thursday, with West Texas Intermediate (WTI) climbing above $84 per barrel after gaining roughly 7% over the past two sessions. Renewed military action between the United States and Iran, combined with a larger-than-expected draw in US crude inventories, has reignited fears of tighter global supplies and added a fresh geopolitical premium to energy markets.

The latest advance follows US airstrikes on Iranian targets, effectively ending a three-day ceasefire that had briefly eased tensions and triggered a sharp pullback in crude prices earlier this week. The renewed conflict comes after Iran struck a US military base in Jordan, while coordinated US and Saudi operations targeted Iran-backed militias in Iraq, heightening concerns that the conflict could spread further across the region.

Supply worries intensified after the US Energy Information Administration (EIA) reported that commercial crude inventories fell by 7.17 million barrels last week, far exceeding expectations for a 2.5 million-barrel decline. The sharp drawdown suggests stronger demand and tighter supply conditions, reinforcing the bullish outlook for oil prices.

Analysts also continue to monitor disruptions around the Strait of Hormuz and Bab el-Mandeb, two of the world's most important energy shipping routes. TD Securities noted that renewed US-Iran hostilities and ongoing Houthi threats against Saudi energy infrastructure are keeping transport risks elevated, reducing confidence that supply flows will normalize in the near term.

Technical Analysis

WTI Eyes Fresh Highs After Buyers Defend Key Support Zone_1

WTI remains in a constructive recovery phase after staging a strong rebound from the $78.40 demand zone. Price has carved out a sequence of higher highs and higher lows, confirming that buyers have regained near-term control despite the broader geopolitical volatility.

The latest pullback has returned price to the $82.20–$82.40 support area, which coincides with the previous breakout level. This zone is now acting as a key decision point. As long as buyers defend this support, the current bullish market structure remains intact and favors another leg higher.

A sustained move above the recent swing high near $84.60 would confirm renewed upside momentum and clear the way toward the $87.30–$87.60 resistance zone. If bullish pressure remains strong, WTI could then extend its advance toward the major supply area around $92.00, where sellers are likely to become more active.

On the downside, a decisive break below $82.20 would weaken the immediate bullish outlook and expose the $78.40 support zone. Losing that level would invalidate the current sequence of higher lows and increase the risk of a broader corrective decline.

Momentum continues to favor the upside, with buyers repeatedly stepping in on dips. The overall price structure suggests that the recent retracement is more likely a pullback within an emerging uptrend rather than the beginning of a fresh bearish move.

TRADE RECOMMENDATION

BUY WTI

ENTRY PRICE: 82.90

STOP LOSS: 78.40

TAKE PROFIT: 92.00

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Warren Takunda

Analysts

Warren Takunda, a seasoned finance leader specializing in the Middle East, is a trusted senior analyst with a proven track record. As head of the finance team, he excels in financial planning, analysis, and reporting. Warren's expertise in financial modeling and investment analysis delivers valuable insights to clients.

Rank

Articless

2813

Win Rate

63.52%

P/L Ratio

0.74

Focus on

XAUUSD, EURUSD, GBPUSD

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