WTI crude oil has staged a remarkable long-term rally, with price spiking sharply higher on the monthly time frame after finding support near the $60.00 area and launching toward the major resistance ceiling at $123.00.

This horizontal level has acted as a significant barrier going back to prior peaks, making it the key line in the sand for the current rally.

If the $123.00 resistance level gives way, WTI crude oil could set its sights on uncharted territory, potentially revisiting the all-time highs established back in 2008 near the $145.00 region or pushing even higher. A clean monthly close above $123.00 would be a strong confirmation that the long-term bullish trend is firmly intact.

Price has surged well above both the 100 SMA and the 200 SMA, with the 100 SMA now crossing above the 200 SMA to confirm that the path of least resistance is to the upside and that the long-term climb is more likely to gain traction from here. The widening gap between the two moving averages reflects strengthening bullish momentum, suggesting that buyers remain firmly in control on the bigger picture.

On the flip side, should price struggle to clear the $123.00 ceiling and begin to pull back, the 100 SMA and 200 SMA dynamic supports could act as floors on any dips, with the $80.00 area serving as a key intermediate support zone to watch.

Stochastic has surged sharply out of oversold territory and is now pointing higher with plenty of room to run before reaching overbought levels, suggesting that bullish momentum still has legs. RSI is similarly pushing into elevated territory and approaching the overbought zone, though it has not yet signaled exhaustion, leaving room for the rally to extend further before sellers step in.

Geopolitical headlines could continue to determine how high crude oil prices could go, as the prolonged closure of the Strait of Hormuz could worsen the energy crisis.