West Texas Intermediate (WTI) crude oil prices declined after two consecutive days of gains, trading around $82.20 during European hours on Friday [1]. Technical analysis indicates that WTI remains within an ascending channel, suggesting the primary trend is still upward, but the recent slip below the nine-day Exponential Moving Average (EMA) signals a potential pause in the broader recovery [1]. The 14-day Relative Strength Index (RSI) is around 51, reflecting neutral momentum after easing from previously overbought conditions [1].
Immediate resistance for WTI is identified at the nine-day EMA of $82.75. A rebound above this level could reinforce the bullish bias and potentially drive prices toward the upper boundary of the ascending channel at $90.40, and then to the nearly three-month high of $92.25, last reached on July 23 [1]. On the downside, support is seen at the 50-day EMA of $81.69, followed by the lower boundary of the ascending channel at $80.80. A sustained break below this support zone could shift the bias bearish, with further downside targets at the seven-week low of $72.53 and the six-month low of $67.09, recorded on July 2 [1].
On the Brent crude side, Deutsche Bank’s Early Morning Reid team highlighted that there are still few signs of progress in reopening the Strait of Hormuz, maintaining a geopolitical risk premium in crude prices [1]. White House Press Secretary Karoline Leavitt stated to Fox News that “No negotiations are happening right now, and this will continue until the president feels that maybe they come to the table in a meaningful way,” underlining ongoing geopolitical tensions impacting the market [1].
No specific analyst forecasts or forward-looking statements beyond technical levels and geopolitical commentary were provided in the article [1].
CONCLUSION
WTI crude oil is experiencing a technical pause after recent gains, with prices hovering near key support and resistance levels. Geopolitical risks, particularly around the Strait of Hormuz, continue to underpin a risk premium in crude prices. Market participants are closely watching for technical breakouts and developments in geopolitical negotiations.