WTI Crude Oil Tests Key Resistance Levels Amid Geopolitical Tensions

WTI crude oil is consolidating in a symmetrical triangle pattern, with the descending trend line from June highs converging with a rising trend line connected by higher lows since late July. Price recently broke above its 100 SMA and is now testing the upper boundary of the formation, hovering near $84.71 per barrel.

This puts crude oil right in the vicinity of the 50% Fibonacci retracement level at $83.84, drawn from the swing high near $93.49 down to the swing low around $74.19. A break above this level could open the door to the 61.8% Fib at $86.12, which lines up closely with the triangle's upper trend line and could be a tougher ceiling to crack.

Geopolitical tensions continue to keep crude oil supported for the time being, though the upcoming FOMC minutes release could have a stronger say on dollar direction and overall sentiment.