WTI crude oil is clawing back higher after finding a floor near the $66.64 region, with price now trading around $86.47 as the bounce continues to build momentum.

The move comes after crude staged a sharp rally into 2026, tagging the swing high area before pulling back sharply through the summer months. The Fibonacci extension tool drawn from that swing low to the swing high shows several ceilings that could come into play as the recovery extends.

The 38.2% level sits at $91.75, with the 50% extension just above at $99.51. A more extended rally could reach the 61.8% Fib at $107.26 or even the 76.4% level at $116.86, which lines up closer to the original swing high.

On the moving average front, the 100 SMA has recently crossed back above the 200 SMA, hinting that the path of least resistance may be shifting to the upside after months of the shorter-term average lagging below. Price is also trading above both indicators, which could reinforce their role as dynamic support on any dips.

Stochastic has pushed back into the overbought zone, reflecting strong buying pressure behind the recent leg higher, though a turn lower from here could signal profit-taking or a pause in the rally. RSI, meanwhile, still has some room to climb before reaching overbought territory, suggesting bulls may retain the upper hand a while longer.

If crude oil can clear the $91.75 mark and sustain gains above it, the door could open for a test of the higher Fib extensions and a longer-term reversal of the corrective slide.

On the other hand, a stall or reversal near current levels could see price drift back toward the $80 region or the rising 100 SMA for support before another attempt higher.

WTI crude oil continues to draw support from geopolitical tensions, as the US and Iran have paused talks and the former has threatened crushing economic pressures should the Hormuz standoff persist.