WTI Crude Oil Extends Bearish Structure Below $86 Support

Traders' Opinions

Summary:

WTI remains under heavy selling pressure after breaking below $86.00. A possible rebound toward $86.50 could offer another selling opportunity, with $82.60 and $74.20 as downside objectives.

SELL WTI

EXP

TRADING

85.000

Entry Price

74.200

93.000

85.398 -0.095 -0.11%

0.0

Pips

Flat

74.200

Exit Price

85.000

Entry Price

93.000

West Texas Intermediate (WTI) crude oil is extending its losses for a second consecutive session, falling below $84.00 during Tuesday’s European trading hours and reaching its lowest level since late August. The latest sell-off reflects growing optimism that diplomatic efforts could bring an end to the US-Iran conflict, reducing concerns over potential supply disruptions. Prices have now retreated sharply from last month’s peak above $104.00, their highest level since May 18.

Market sentiment shifted after US President Donald Trump pointed to positive progress toward ending the conflict, suggesting that further military strikes against Iran were increasingly unlikely. His remarks have strengthened expectations of a possible diplomatic resolution, putting pressure on crude oil as traders reassess the geopolitical risk premium previously supporting prices.

Nevertheless, uncertainty surrounding negotiations continues to limit confidence in a lasting resolution. Mohsen Rezaei, Secretary of Iran’s Supreme National Security Council, rejected reports of active negotiations as false and maintained that Washington must agree to Tehran’s seven conditions before the conflict can end. This disagreement highlights the possibility that tensions could remain elevated despite the more optimistic signals coming from Washington.

Beyond geopolitical developments, movements in the US Dollar could influence oil’s near-term direction. A weaker Greenback may provide some support to dollar-denominated crude, although traders are increasingly focused on the upcoming US consumer inflation figures for further clues about the economic and monetary policy outlook. For now, expectations of reduced conflict-related supply risks remain the dominant pressure on WTI.

Technical Analysis

WTI crude oil is maintaining a strong bearish structure on the four-hour chart, trading around $84.56 after an aggressive sell-off from the recent highs above $103.00. The decline has pushed prices below several important support zones, indicating that sellers remain firmly in control and that the previous bullish structure has been significantly weakened.

The most important development is the breakdown below the $86.00–$86.50 support region. This area had previously acted as a demand zone, but the latest move beneath it suggests that former support could now become resistance. The subsequent recovery attempt toward $90.00 failed to regain bullish momentum, with sellers quickly returning and pushing WTI toward the $82.60 region.

The immediate technical outlook remains bearish, although a temporary recovery toward $86.00–$86.50 cannot be ruled out. Such a rebound could provide an opportunity for sellers to re-enter the market if the former support zone rejects the recovery. A sustained move below $82.60 would further strengthen downside momentum and potentially expose the $80.00 psychological level.

The projected price path suggests a possible short-term rebound toward $86.00 before another downward extension. If selling pressure accelerates, the next major downside objective appears around $74.00–$74.50. However, a sustained recovery above $86.50 would weaken the immediate bearish setup, while a move above $92.50 would signal a more meaningful improvement in market structure.

For now, the bearish bias remains dominant as long as WTI trades below the broken support region.

TRADE RECOMMENDATION

SELL WTI

ENTRY PRICE: 85.00

STOP LOSS: 93.00

TAKE PROFIT: 74.20

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