WTI extends recovery from two-week low, approaches $92.00 on US-Iran and Hormuz risks

💡 DMK Insight

WTI crude oil’s bounce from the $88.75-$88.70 zone is a crucial moment for traders. After hitting a two-week low, this recovery could signal a short-term reversal, especially if it holds above $89. A sustained move above this level might attract bullish sentiment, potentially pushing prices higher. However, keep an eye on broader economic indicators, like inventory reports and OPEC decisions, which could influence volatility. If WTI fails to maintain this support, we might see a retest of lower levels, which could trigger stop-loss orders and exacerbate selling pressure. The flip side? If the market reacts negatively to upcoming economic data, we could see a quick return to bearish sentiment. Watch for key resistance around $90.50, as a break above could indicate a stronger bullish trend. For now, traders should monitor the $88.75 support closely and be prepared for potential swings in either direction.