USOIL (WTI) Analysis: Will Oil Retest 120 Level??WTI CRUDE OILTVC:USOILtanmay_agrawalMarket Bias: Conditional Bullish CMP: ~$86.63 Trigger Level: A decisive close above the neckline of the inverse H&S pattern (the descending trendline near ~$88.50) Potential Target: $120.03 (+36.91% from breakout point) ---------------------------------------------------------------------- Technical Analysis •Since the Iran war escalated on March 9, 2026, WTI has been consolidating under a descending trendline acting as resistance. •Prices have formed an inverse H&S pattern, and the descending trendline is also the pattern's neckline. •Price is currently testing the resistance line and a breakout will trigger a boost in prices towards the potential target of 120.00. •The EMAs - 20/50/100 are making a cluster, making it a strong support area; also, the fast-moving EMAs are crossing above the slower ones -------------------------------------------------------------------------- The macro environment is again supporting a bullish outlook in oil: •The Strait of Hormuz remains heavily throttled below pre-war levels. •The expiration of the US-Iran ceasefire and Washington's total financial blockade on Tehran completely rule out near-term supply relief. •Saudi overland bypass pipelines are tapped out at their maximum 7 million bpd capacity, leaving a permanent gap in global supply. •Global demand shows zero signs of cooling down. Because global safety reserves and Strategic Petroleum Reserves (SPR) are already depleted, the market lacks any remaining inventory cushion to absorb this structural supply deficit Although any signs of relief in the war will cool down any aggressive buying and prices might fail to break the resistance trendline