WTI Crude Oil Rebounds from $88.66 Support

WTI crude oil has found critical support near the $88.66 mark, sparking a potential bullish reversal. On Tuesday, the price dropped to $88.66 but bounced back, finding support at the August swing high of $88.64. The session initially saw a break below the 50-day moving average, but buyers quickly regained control, pushing the price back above that average and Friday’s low of $90.51.

The day ended with a bullish hammer candlestick pattern, indicating a shift from seller dominance to buyer control. A move above Tuesday’s high would confirm this reversal. Support was further reinforced by a rising trendline near the same price area, suggesting the bullish channel structure remains intact. This strengthens the case for a recovery if Tuesday’s low holds.

The first upside target for a breakout is the interim lower swing high of $96.25, followed by $100.43. The channel structure suggests the top boundary could eventually be tested, with a potential resistance range between $107.47 and $109.74. A sustained advance through intermediate swing highs would open the way toward this broader resistance zone.

The 50-day moving average has become a key test. After reclaiming it in August, the current pullback carries greater significance. The successful defense of this average, combined with support at the August swing high and the rising trend channel, supports the underlying bullish strength. For now, Tuesday’s low at $88.66 is the key reference point, while a move above Tuesday’s high would confirm a more meaningful bullish reversal.