Hi!

WTI Crude Oil is signaling a major trend reversal. After a steep corrective phase, the market has successfully navigated through several layers of resistance, shifting the bias from bearish to decisively bullish.

Technical Breakdown: The Road to Recovery
The transition from the recent downtrend to the current bullish outlook is supported by a confluence of high-probability price action signals:

  1. The Flip Area Foundation: The entire reversal started at the massive grey “Flip area” around $80.00. Price touched this historical support/resistance zone and saw an immediate, aggressive reaction. This confirms that institutional buyers were waiting at this level to defend the macro trend.
  2. Trendline Break & QML: The descending trendline that capped the price for weeks has been broken. More importantly, we see a QML (Quasimodo Level) formation in the green zone. This structural “fake-out” effectively cleared out late sellers before the real move higher began.
  3. The Engulfed Level: Price has now traded through and engulfed the previous supply level at approximately $94.00. Just like we’ve seen in previous setups, engulfing this level neutralizes the bearish pressure that was holding the price down.

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Targets
The path of least resistance is now pointing higher. As indicated by the blue projection, we anticipate a potential minor pullback or consolidation to retest the newly engulfed support before the next expansion phase.

  • Target 1 ($103.50): This is the first major objective. It aligns with previous structural consolidation and represents a logical area for some short-term profit-taking.
  • Target 2 ($108.50): This is the secondary, high-conviction target. If momentum remains strong, this upper supply zone is the next magnet for price.

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