FX.co ★ CL/Crude Oil

West Texas Intermediate (WTI), the benchmark US Crude Oil price, has drawn buyers for the second consecutive day, trading above the psychologically significant $100.00 level during Tuesday's European session. The commodity is also close to its five-month high, set last Friday, as market participants await developments in the Middle East crisis. Market sentiment is positive regarding the possibility of resolution in the war between the US and Israel and Iran, and this is putting some pressure on crude oil prices amid the fear of disruption in supplies. However, the geopolitical risk premium still exists due to the deadlock between the US and Iran, along with increased attacks by Houthis backed by Iran against Saudi Arabia. In addition to this, the Lebanese militant Hezbollah group is making preparations for renewed war with Israel. Technically, oil is trading with a bullish near-term bias above the 100 SMA and key Fibonacci retracement support at $86.58 to $99.42 on the 4-hour chart. However, the RSI is currently trading around 50.69, indicating a shift back toward neutrality from the previously observed overbought conditions. Additionally, the MACD is currently trading in negative territory, suggesting consolidation rather than a reversal in an otherwise supported uptrend. On the support side, immediate support lies at the 23.6% Fibonacci retracement at $99.42, followed by the 38.2% retracement at $96.97 and the 50% retracement at $94.98, which converge around the 100-period100-period SMA at $94.74 and form a strong demand zone. Further downside will test the 61.8% retracement at $93.00 as well as the lower levels at $90.18 and $86.58. Immediate resistance above is the recent cycle-high anchor near $103.39.