WTI crude oil has broken out of its symmetrical triangle formation, with price surging past the triangle top to reach highs around $97.79 per barrel.

This breakout suggests that an uptrend of similar height to the formation could be in the cards, but the commodity may need to pull back first to gather more bullish momentum before extending the climb.

The Fibonacci retracement tool, drawn from the swing low near the triangle bottom to the recent swing high, highlights levels where dip-buyers could step in. The 38.2% Fib lines up at $90.98, while the 50% level is at $88.88, close to the broken triangle resistance turned support.

A deeper correction could reach the 61.8% Fib at $86.78, which is also near the triangle’s midpoint and could be the line in the sand for a bullish pullback. A slide all the way back to the 100% retracement around $79.97 would put the breakout in question.

On the moving averages front, the 100 SMA is above the 200 SMA, confirming that the path of least resistance remains to the upside. Price is also trading well above both indicators, so these could serve as additional dynamic support if the pullback deepens.

Stochastic is hovering in the overbought region, reflecting exhaustion among buyers after the sharp rally, so a turn lower could trigger the anticipated pullback toward the Fibonacci levels. The oscillator has room to fall before reaching oversold, meaning the correction could persist for a while once it kicks in.

RSI is also elevated near the overbought threshold but still has some room to climb, suggesting buyers could remain in control a bit longer before sellers force a retracement. If the Fib levels hold as support during the pullback, WTI crude oil bulls could look to resume the climb toward new highs beyond $97.79.

Escalating geopolitical tensions could continue to prop oil prices higher, as further constraints to global supply could come in play.