WTI Price Forecast: Hangs near two-month low; vulnerable below $85.00/100-day SMA
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – struggles to attract any meaningful buyers and languishes near its lowest level since April 17, touched during the Asian session earlier this Friday. The commodity currently trades around the $84.65-$84.70 region, down 0.50% for the day, though it lacks bearish conviction amid the uncertainty over the US-Iran peace deal.
US President Donald Trump said that a deal had been reached with Iran and the final document could be signed soon, perhaps even over the weekend, which triggered a massive sell off around Crude Oil prices on Thursday. However, Iran countered that it had not reached a final decision on an agreement. Adding to this, Iranian forces blocked a tanker from transiting through the strategic Strait of Hormuz without coordination, keeping geopolitical risk premiums in play and acting as a tailwind for Crude Oil prices.
From a technical perspective, the near-term bias stays bearish as the commodity now seems to have found acceptance below the $85.00 horizontal support, which coincided with the 100-day Simple Moving Average (SMA). Daily Relative Strength Index (RSI) sits near 40, hinting at persistent weak momentum, while the negative Moving Average Convergence Divergence (MACD) reading reinforces a downside-skewed tone. This keeps the recent pullback intact following the failure to sustain above the $90.00 mark.
.On the topside, the 100-day SMA, levels just above the $85.00 mark, is the first resistance that bulls would need to reclaim to ease immediate selling pressure and open the door toward the $90 region. Until that barrier is cleared on a daily closing basis, rallies are likely to be viewed as corrective within a broader consolidation, leaving WTI vulnerable to further retracements toward recent lows in the sub-$80.00 levels.
(The technical analysis of this story was written with the help of an AI tool.)
WTI daily chart
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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