WTI Crude Oil Breaks Out of Falling Wedge, Targets $94.34

WTI crude oil has broken out of a falling wedge pattern, putting $94.34 in focus and setting the stage for further gains. The breakout from Monday's price action reclaimed the 50-day moving average, currently near $80.25, and Tuesday's high of $84.87 signaled a bullish reversal above an interim lower swing high at $82.76.

The higher daily low of $82.52 is short-term support for WTI oil, but if broken to the downside, it may test the 50-day moving average or even fall further towards $77.47, which provides important support from the 200-day moving average.

The falling wedge pattern has an initial upside target at the recent swing high of $94.34, a 61.8% Fibonacci retracement of the prior decline before sellers took back control and led to the bottom of the wedge and a higher swing low at $74.60. A move toward $94.34 would represent the first major test of whether Tuesday's bullish reversal can develop into a larger trend change.