- WTI crude oil posts a bullish gap, reaching its highest levels since July 2022.
- Iran-related tensions fuel upward pressure, but rally could be short-lived.
- Momentum indicators mirror the surge, extending into overbought territory.
WTI crude oil surged more than 30% on Monday, reaching its highest levels since mid‑2022, as the deepening conflict in the Middle East intensified supply‑disruption fears, further amplified by the appointment of Iran’s new supreme leader. The rally pushed prices just shy of the 120.00 level before easing lower toward the 102.00 area.
If the pullback extends, as the price action currently continues to retreat from the intraday spike, a sustained break below the 200% Fibonacci level at 103.97 and a stabilization near the 102.00 area would expose the next support at 94.63, followed by 92.80, which marks an over two‑and‑a‑half‑year high. Below that, additional support is located in the 88.87-85.30 region.
That said, the technical indicators reinforce the strong bullish momentum, with the RSI pushing deep into overbought territory, and the MACD continuing to overextend above zero and its red signal line.
Thus, if the accelerated buying persists above the 261.8% Fibonacci retracement level of the June-December 2025 downleg at 119.58, the price could retest resistance at the June 2023 highs near 123.70, followed by the March peaks in the 127.00-130.00 zone.
Overall, WTI crude oil has extended a six‑day rally to climb toward nearly four‑year highs. However, with price action now paring gains and volatility triggering aggressive swings between 98.00 and 120.00, the advance may pause, potentially allowing for a retracement toward the 90.00 region before the broader uptrend resumes.
