WTI crude oil has staged an impressive rally after bouncing off the lows near the $54.61 level, breaking above a long-standing descending trend line that had been capping gains since 2022.

Price has since surged to test the $119.43 swing high, but is now pulling back to retest the broken trend line as a potential new support zone.

This pullback could be a healthy consolidation before the next leg higher, as the broken resistance-turned-support could attract fresh buyers looking to join the uptrend at a more favorable entry. The Fibonacci retracement tool drawn from the swing low to the recent peak shows where buyers could be waiting to hop in.

The 38.2% Fib is at $94.67, which is the nearest level of interest and aligns closely with current price action. A deeper retracement could reach the 50% Fib at $87.02, while a larger correction could extend to the 61.8% level at $79.37 near the broken trend line and the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA has crossed above the 200 SMA to confirm that the path of least resistance is to the upside and that the broader bullish trend is gaining traction. Both indicators are trending higher, reinforcing the idea that dips could be seen as buying opportunities.

Stochastic is pulling back sharply from the overbought region, reflecting a return in selling pressure following the recent peak. The oscillator has plenty of room to slide before reaching the oversold area, which means the correction could extend further before buyers regain control.

RSI, however, appears to be turning lower from elevated levels as well, suggesting that the pullback could deepen before finding a floor. If RSI holds above the midpoint and turns back up, this would indicate that the broader bullish momentum remains intact and that crude oil could eventually resume the climb toward the swing highs or higher.