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WTI holds below $83 as Iran-Houthi risk supports near-term upside
WTI is trading just under $83.00 after holding above the 38.2% Fibonacci level from the July-August slide, keeping a bullish technical setup intact.
West Texas Intermediate crude is attracting buyers for a third straight session, trading just below the $83.00 mark during Wednesday's Asian hours, close to a nearly two-week high reached the prior day, according to FXStreet.
The upside bias is supported by geopolitical concerns around supply disruptions in West Asia, with an advisor to Iran’s Supreme Leader saying the Strait of Hormuz will not be opened until the US meets Tehran's demands and with fresh strikes by Yemen’s Iran-backed Houthis on shipping in the Red Sea raising disruption fears.
On the technical front, FXStreet says WTI is holding above the 38.2% Fibonacci retracement level of the July-August decline and that the Relative Strength Index (14) is at 64.6, staying in positive territory without yet signaling overbought conditions.
Further gains are framed as possible toward the 50% retracement at $82.9, then the 61.8% level at $85.1, while initial support is seen at $80.7 before the 23.6% retracement at $78.0 and the $73.6 swing low in a deeper pullback scenario.
Latest closeWTI crude $83.42 ▲1.6%