Oil prices consolidate above key technical levels, with geopolitical tensions and supply concerns underpinning a bullish outlook.
West Texas Intermediate crude oil trades near $79.00, extending its fourth consecutive day of consolidation during European trading. The price action follows a breakout above the 23.6% Fibonacci retracement of the April-July decline and the 200-day simple moving average on the 4-hour chart, signaling a potential bullish phase.
Technical indicators present a mixed picture. The Relative Strength Index hovers around 59, while the MACD remains in negative territory, suggesting limited near-term momentum. However, escalating U.S.-Iran tensions and risks of supply disruptions in the Strait of Hormuz provide support, favoring further upside.
A sustained move above $80.00 could target the 38.2% Fibonacci retracement at $82.48, followed by resistance near $87.25. Stronger supply zones lie at $92.01 and $98.79 if buying interest persists.