WTI crude oil has formed an inverted head and shoulders pattern on the short-term time frame, signaling that a reversal from the earlier downtrend could be in the works.

Price has since broken above the formation’s neckline resistance around the $93–94 area, confirming a shift in trend and opening the door to further gains ahead.

Adding to the bullish case, price has also broken above the descending trend line that had been capping the rally since early April, suggesting that sellers are losing their grip and buyers are starting to take control.

The breakout puts WTI crude oil back above the $96.00 handle, with the measured move target of the inverted head and shoulders pattern pointing to a potential climb toward the $100.00 psychological resistance level.

On the moving averages front, price has surged back above both the 100 SMA and the 200 SMA, with the indicators now converging in a tight area around the $92–94 zone. A bullish crossover could follow if the 100 SMA pushes back above the 200 SMA, which would confirm that the path of least resistance is shifting back to the upside.

Stochastic is turning higher from the midpoint area, reflecting a fresh pickup in bullish momentum. The oscillator has room to climb before reaching the overbought zone, suggesting buyers could keep the upper hand for now.

RSI is also pointing higher and approaching the upper boundary of its range, though it still has some room to run before flashing overbought signals, meaning price could keep following suit while buyers press their advantage.

Traders will be watching inventory data and geopolitical developments closely, as any fresh supply disruption headlines could provide additional fuel for the rally. Unease ahead of the weekend, which typically contains the biggest US-Iran updates, appears to be spurring some profit-taking activity as well.