WTI Targets $87.36 Resistance Before Eyeing July Recovery High

The price of WTI crude oil has been on an upward trend, breaking out of a falling bullish wedge pattern that formed last week. This breakout has set its sights on several key targets, including the top of the wedge at $94.34, which is also the lower swing high from July.

However, before reaching this target, WTI must first break through the resistance level of $87.36, which corresponds to a 61.8% Fibonacci retracement of the prior decline. This area marks a key potential resistance zone, as it was confirmed as resistance during the prior advance in July.

A pullback to test support near the 20-day moving average, currently at $83.05, could be an opportunity for buyers to re-enter and potentially complete the second leg up after the falling wedge breakout. If support holds, this would keep the focus on higher targets, including $89.14 to $90.59 and potentially $94.34.