From TradingView · · 1m 10s
WTI crude tests key resistance as geopolitical risks mount
Oil prices push toward $104.30 breakout zone, driven by Middle East supply fears and ahead of crucial inventory data.
In brief
Oil prices push toward $104.30 breakout zone, driven by Middle East supply fears and ahead of crucial inventory data. WTI's rally to $104.30 is supported by geopolitical risk, but tomorrow's EIA inventory report will determine if the breakout holds or reverses. Originally reported by TradingView.
Oil pushes toward $104.30 resistance
WTI is trading near $103.40 after another rally attempt. The price is testing a critical resistance level at $104.30.
Two forces driving the rally
Middle East supply risks and tomorrow's EIA inventory data are pushing prices higher. Geopolitical concerns are keeping a premium in oil markets.
“When traders see risk to export routes, pipelines or tanker traffic, oil can rise before the disruption fully appears in inventories.”
EIA report is the next test
After the previous crude draw of -0.391M barrels, another draw would support bulls. A surprise inventory build could trigger profit-taking.
Technical picture remains bullish
WTI trades above all major moving averages with RSI near 65. Strong momentum is present, but price is now testing resistance rather than support.
Breakout or pullback scenarios
A clean close above $104.30 could open the path to $105.50 and $108.00. If rejected, first support sits around $101.50, then $97.23.
The essence
WTI's rally to $104.30 is supported by geopolitical risk, but tomorrow's EIA inventory report will determine if the breakout holds or reverses.
