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.

————————–

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.