- WTI Oil took a significant hit throughout yesterday’s session as Axios revealed a more US-Iran deal under construction, and these flows are extending in today’s session
- Confirming its price action below $100, sellers are attempting a push towards $90. Will momentum be enough to break the key level?
- Exploring an in-depth Technical Analysis of the commodity
WTI Crude Oil dropped sharply yesterday after Axios reported that the US and Iran are working on a broad peace deal. The strong selling pressure is continuing into today.
After falling 8% yesterday, WTI is down another 5% today. Sellers are clearly getting in control of the market.
For months, prices rose steadily due to geopolitical tensions. Now, the trend has quickly shifted to a clear downward move. Now that prices have dropped below the key $100 level, the pressure is falling, and sellers are pushing toward $90.
The main question is whether this momentum will break that important support, as momentum becomes slightly oversold and Participants will look to confirm the latest narratives.
Peace Deal odds for June 30 – Source: Polymarket
The prediction-market odds US-Iran peace deal by June 30 are currently around 55% after remaining around 30% for a while – A peace deal by May 31 is quite optimistic, but the odds are also rising above 40%.
Traders are selling oil mainly because negotiations are moving toward an agreement to reopen the Strait of Hormuz, as confirmed by a report from Al Arabiya . Allowing normal shipping through this key route is a major reason for the drop in oil prices.
But for oil to fall another $20 and for gas prices to drop for consumers, a formal deal still needs to be signed.
This possible peace will need to be confirmed during the coming weeks of diplomatic talks, which recent statements have hinted at – With the much anticipated Trump-Xi meeting taking place next week, this could be an important date for the Oil Market.
Now, let’s take a closer look at the technical analysis for WTI Crude to see if sellers can push prices below the $90 support level.
US Oil Intraday Timeframe Analysis
WTI 4H Chart and Technical Levels
WTI Oil 4H Chart – May 7, 2026. Source: TradingView
WTI has officially formed a decent looking top, with a lower high throughout the past week leading to the ongoing tumble, down 19% since its April 29 top.
Now breaking the key $93 Pivot zone with momentum, establishing below this area will be essential to confirm more downside ahead.
Higher timeframe traders will want to see a break and close below $90 to confirm.
WTI Technical Levels:
Resistance Levels
- Momentum Support now pivot $93 – $95 (breaking)
- $98 to $100 Pivotal Resistance
- $104 next-mini resistance (morning highs!)
- 2022 and Monday highs $117 to $120 (larger channel top)
Support Levels
- $90 Psychological level and past session’s lows
- $87 to $90 mini-Support
- $82 Friday 17 lows
- 2025 Highs Key Support $78 to $80
1H Chart and Action Levels
WTI Oil 1H Chart – May 7, 2026. Source: TradingView
Swing trading such erratic Markets remain a fantasy, hence it could always be wiser to capture quick moves and re-assess with the news.
The action is currently oversold on most shorter timeframes, a reason why the selloff has somewhat stalled in the last hour. But Traders should still look at these elements:
- As long as the price action remains below $94.00, bears remain in control.
- Watch out for minor upside consolidation around here; if the action stays stuck below the level, this adds to odds of a downside break.
- The selloff should accelerate if heavy volume sales occur below $90.
- Breaking back above $95 would hint at more rangebound or rallying action ahead (all the way to $103)
Safe Trades and Keep your eyes on the news!
Editorial note: This recovered market brief has been cleaned and reclassified by Next Move Markets for educational market intelligence. It is not investment advice.
Next Move Markets desk view
For active traders, this brief should be read through the lens of energy markets rather than as a standalone headline. The key question is whether the theme behind Crude Oil on Path to $90 as the Peace Trade Continues – WTI Technical Analysis can influence positioning beyond the first reaction. That means watching supply headlines, inventory data, OPEC policy, transport routes and geopolitical risk together, not in isolation.
A richer trading read comes from separating the catalyst from confirmation. The catalyst explains why markets are paying attention; confirmation comes from price action, liquidity and cross-asset behavior after the headline is digested. If those signals do not align, traders should treat the move as fragile and keep risk tighter.
What traders should watch next
- Whether the headline changes physical supply expectations or only short-term sentiment.
- How Brent and WTI react around recent technical ranges after the first volatility spike.
- Inventory data, OPEC communication and shipping-route risk that can confirm the theme.
- Currency moves and global growth expectations that may offset energy-specific catalysts.
Risk context
This article is a market-intelligence brief, not a trade recommendation. Before acting on the theme, traders should define invalidation, position size and the time horizon of the setup. The same headline can support a short-term reaction and still fail as a multi-session trend if liquidity, policy expectations or broader sentiment move the other way.
Scenario map
The base case is that traders keep this theme on the radar while waiting for confirmation from supply headlines, inventory data, OPEC policy, transport routes and geopolitical risk. A stronger continuation scenario requires follow-through after the first reaction, preferably with related assets moving in the same direction. A failure scenario develops if the headline is quickly absorbed, volatility fades and price returns inside the previous range.
For energy markets, the most useful approach is to compare the article theme with live market behavior. If the market confirms the narrative, pullbacks can become more constructive. If the market rejects it, the headline becomes background noise rather than a trading driver.
Execution discipline
- Define the level first: traders should know where the idea is invalidated before thinking about upside or downside.
- Separate news from setup: Crude Oil on Path to $90 as the Peace Trade Continues – WTI Technical Analysis may explain attention, but entry quality still depends on timing, liquidity and risk/reward.
- Watch confirmation: a clean move usually appears across related markets, not only in one isolated instrument.
- Control exposure: if volatility expands, smaller position sizing can be more professional than chasing the headline.
Next Move Markets treats this kind of brief as a starting point for preparation: identify the driver, map the scenarios, then wait for the market to prove which path is actually being priced.
