Over the past 24 to 48 hours, the WTI crude oil market has experienced significant volatility, with prices surging from the closing price of $71.41 on March 2 to above $73. The primary driver behind this movement is the escalating geopolitical tensions between the US and Iran in the Middle East. The joint US-Israel strikes on Iran have heightened fears of a potential closure of the Strait of Hormuz, a critical oil shipping route, causing a sharp rally in oil prices.

Recent market news, including headlines such as “$100 Crude Back in Focus,” “Crude Oil and the War in the Middle East,” and “WTI Crude Oil Explodes Above $73 As Hormuz Risk Premium Returns,” underscores the direct impact of these geopolitical risks on oil prices. The spike of over 13% reflects investor concerns over disruptions in supply, serving as a wake-up call for those reliant on energy commodities, signaling impending uncertainty and market turbulence.

Put simply, if this geopolitical crisis were like an impending natural disaster, investors are akin to residents bracing for an approaching storm, needing to prepare for higher energy costs and market fluctuations, while closely monitoring whether the situation will further worsen supply disruptions. Overall, the recent market news has undeniably triggered a rapid surge in WTI crude oil prices, and investors should stay vigilant about ongoing developments and related risks.

Daily Chart

The daily chart shows WTI Crude rebounding from the $65 range in late February to test the $75 resistance zone, followed by a pullback to $71. Price action remains above the 50-day moving average, which continues to slope upwards, indicating underlying bullish momentum. Bollinger Bands have begun to contract, signaling a temporary reduction in volatility, while volume levels suggest ongoing market digestion of geopolitical risks. MACD remains positive but its histogram is shrinking, pointing to a weakening momentum that traders should watch closely. The overall daily structure indicates a consolidative bullish context.

1H Chart

On the 3-5 day hourly chart, WTI has demonstrated increased volatility, with prices sharply moving from $69 to above $73, forming a clear V-shaped recovery. The 20-hour moving average acts as immediate support, with prices rebounding multiple times from this level. An intraday MACD golden cross was observed, supporting the likelihood of continued upside in the short term. Bollinger Bands have expanded alongside rising volume, confirming sustained volatility. Traders should remain cautious of short-term overbought conditions but acknowledge the robust bullish impulse.

Technical Trend:  Volatile but bullish-leaning short-term trend

Technically, WTI is engaged in a tight battle between bulls and bears. The daily chart shows sustained bullish pressure but a weakening momentum as indicated by MACD. The shorter-term hourly chart reveals a strong rebound supported by key moving averages and volume spikes. Notably, the recent breakout above the $73 resistance level marks a critical technical shift favoring further gains if maintained. The presence of large bearish candles followed by strong rebounds suggests that the market remains highly reactive to Middle East risk. Traders need to stay alert to both technical momentum signals and geopolitical news flow.

Today’s global economic calendar features no significant events that are directly relevant to WTI Crude Oil. The price action will continue to be primarily influenced by geopolitical developments and supply concerns rather than scheduled economic data releases.

Resistance & Support

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