• WTI futures pull back from 2-month high

• But meet strong support at 50.0% Fibonacci

• Momentum indicators ease but remain positive

WTI oil futures (August delivery) have been in a steady uptrend since early June, posting a fresh two-month high last week. Although the price experienced a pullback from its recent high, it quickly found support at 81.50, which is the 38.2% Fibonacci retracement of the 95.02-67.97 downleg.

Should selling pressures persist, the bears have to initially push the price below the 50.0% Fibo of 81.50. A violation of that region could bring the 38.2% Fibo of 78.30 under scrutiny. Failing to halt there, the price may descend towards the 23.6% Fibo of 74.35.

On the flipside, bullish actions could propel the price higher for a re-test of the 61.8% Fibo of 84.69. Conquering this barricade, the bulls may attack the April peak of 86.90. If that hurdle also fails, attention might turn to the 78.6% Fibo of 89.23, a region that provided solid resistance in October 2023.

In brief, WTI oil futures seem to be stuck between the 50.0% and 61.8% Fibonacci retracements after their advance came to a halt. Therefore, a break above or below that range is likely to be followed by a strong move in the same direction.