WTI crude oil has broken above a descending trend line on the short-term time frame, signaling that the earlier downtrend could be losing steam and that buyers are starting to regain the upper hand.

Price has since surged past the Fibonacci retracement levels and is currently hovering around $95.27, but a pullback to retest the broken trend line and nearby support could attract more buyers looking to join the move higher.

The 61.8% Fib level sits at $86.53, followed by the 50% level at $88.80 and the 38.2% Fib at $91.07. A shallow dip could find support at the 38.2% level, while a deeper correction could pull price toward the 50% or 61.8% Fibs before bulls step back in. If any of these hold as a floor, WTI crude could resume the climb toward the swing high at $98.41 and possibly beyond.

The 100 SMA has crossed above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction from here. Price is also trading above both indicators, which could serve as dynamic support on any dips.

Stochastic, however, is turning lower from the overbought zone, suggesting that buyers may be running out of steam in the near term. The oscillator has plenty of room to slide before reaching the oversold area, meaning a corrective dip toward the Fib levels remains on the table before sellers give way.

RSI is also pulling back from the upper range but remains above the midpoint, reflecting that bulls still have the edge overall. A bounce from the midline could reinforce the case for a continued rally back toward the $98.41 swing high.

WTI crude oil continues to take cues from geopolitical headlines, with the latest round of developments pointing to escalation and sustained global supply concerns after tensions flared on the Strait of Hormuz last week.