Over the past 24 to 48 hours, WTI Crude Oil prices continued to surge, climbing from the closing price of $84.5 on August 17 to reach multi-year highs. The main driver behind this rise is the escalating military tensions between the US and Iran, particularly following the expiration of their memorandum of understanding, raising fears of further instability in the Middle East that threatens supply security.

Recent market news highlights strong oil futures, with crude prices sharply rebounding amid concerns over the US-Iran conflict, coinciding with the 30-year US Treasury yield hitting decades-high levels and a decline in stock markets. Energy-related equities have benefited from this dynamic, while higher oil prices have pushed US gasoline prices up by nearly 30%, increasing refining costs.

For the average investor, consider this as a scenario where local supply chains face tension and crude oil—the cornerstone of global energy—experiences sharp price hikes. This not only boosts profit expectations for oil and gas companies but also impacts everyday energy expenses. Canadian producers, for example, have recently abandoned hedging strategies to capitalize on the bullish market. Overall, geopolitical risks continue to reshape the pricing logic in oil markets, setting a ‘new equilibrium.’ Investors should closely monitor ongoing talks and regional developments as they will critically influence future crude oil trends.

Daily Chart

The daily chart of WTI Crude shows a clear, sustained upward trend over the past several weeks, with prices climbing steadily from the mid-$70s to above $84. Moving Averages are bullishly aligned, with shorter-term averages crossing above longer-term ones, indicating strong trend momentum. Bollinger Bands are expanding, reflecting increased volatility. The MACD remains above zero with bullish crossover patterns, confirming ongoing buying pressure. Support is firmly established near $80, while immediate resistance sits around $85, confirming a robust bullish stance over the medium term.

1H Chart

On the hourly chart covering the last 3-5 days, WTI crude demonstrates consolidative upward movement between $83.5 and $85. Short-term moving averages slope upwards, with price frequently testing and slightly retracting from the upper Bollinger Band, hinting at active buying tempered by short-term resistance. A notable long upper shadow candlestick on August 17 signals potential near-term selling pressure. However, bullish MACD crossovers and an RSI nearing overbought territory suggest momentum persists but caution is warranted for possible short-term pullbacks.

Technical Trend:  WTI Crude currently exhibits a decisively bullish trend with elevated volatility, calling for caution in short-term trading.

Technically, WTI crude is testing key resistance levels with a strong bullish trend on the daily timeframe, but short-term correction pressures appear. Geopolitical developments heighten supply disruption fears and contribute to upward momentum. The MACD golden cross indicates continued potential upside, although RSI nearing overbought warns of possible short-term pullbacks. A bullish flag pattern is forming, where a breakout could trigger the next leg higher. Crucial support near $80 must hold to maintain bullish market confidence.

There are no significant or directly relevant economic events scheduled today that would impact WTI Crude Oil prices. The market remains primarily focused on geopolitical developments and supply-side factors in the Middle East, which continue to dominate oil price movements.

Resistance & Support

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