The sharp short squeeze triggered by tensions in the Strait of Hormuz has structurally altered the near-term technical setup for both benchmarks.
1. WTI Crude Oil (Aug Futures)
WTI has broken above its short-term descending channel and is actively consolidating near a one-month high just north of the $79.00 handle.
Trend & Momentum: The breakout has pushed WTI decisively back above its 200-day Exponential Moving Average (EMA) and cleared the 23.6% Fibonacci retracement of its previous April-to-July decline.
Momentum indicators lean constructive, with the Relative Strength Index (RSI) hovering around 55.00 and the MACD line crossing into positive territory above the zero line. Key Resistance Levels:
$80.28 / $80.50: First immediate structural ceiling (Pivot R1 / intraday high).
$82.41 / $83.47: Major horizontal supply zone; clearing this opening up potential targets toward the high $80s.
Key Support Levels:
$79.00 / $78.50: Crucial ascending trendline dynamic support.
$76.27: The primary Daily Pivot Point. A daily close below this layer invalidates the short-term bullish thesis.
2. Brent Crude Oil
Brent has successfully reclaimed its dynamic support structures, shifting market sentiment back toward buyers after breaking the upper boundary of its macro descending channel.
Trend & Momentum: The aggressive short squeeze has pushed price action to stabilize inside an $85.00–$86.00 consolidation band.
Prices are confidently holding above the 65-period EMA, which is now transitioning from dynamic resistance into reliable dynamic support. Key Resistance Levels:
$85.05 / $85.50: The current immediate technical barrier. Buyers are attempting to establish a clean breakout structure here.
$88.55: A secondary major pivot layer. If Brent clears this zone with conviction, the path unblocks toward the psychological target near $93.00.
Key Support Levels:
$84.05: Immediate local intra-day support.
$78.50: Major line-in-the-sand support. Settling below this invalidates the current growth phase and signals that sellers have regained control.
Technical Summary
Support 2 Support 1 CURRENT Resistance 1 Resistance 2
WTI (Aug) $76.27 $78.50-79.00 ~$79.35 $80.28-80.50 $83.47
Brent $78.50 $84.05 ~$85.66 $85.05-85.50 $88.55
Trading Bias: While the technical picture remains bullishly biased above key trendline supports, both assets are showing minor fatigue at their primary resistance bands ($80.50 for WTI and $85.50 for Brent). Look for a sustained daily close above these levels to confirm the next leg higher, while keeping stops tight around key support in case geopolitical headlines shift rapidly.
