WTI Analysis: Gap Breaks Short-Term Trend as Price Remains Trapped Between the POC and Profile Boundary
Key Takeaways
- •WTI crude oil fell more than 7% on 27 July 2026 after the US suspended strikes against Iran over the weekend.
- •Brent crude moved below $90 per barrel during the sell-off.
- •Bloomberg reported that Yemen's Houthi movement claimed attacks on Saudi Aramco facilities in Jizan and Yanbu.
- •WTI had risen from about $68 on 2 July to a peak near $94.2 before breaking its ascending trendline on 27 July.
- •The market is now focused on the $84.7 POC, the $82.7 lower profile boundary, and the $80.5 support level if the decline deepens.
WTI crude oil plunged by more than 7% on 27 July 2026 after the US suspended a series of strikes against Iran over the weekend, raising hopes of a diplomatic solution and the reopening of shipping through the Strait of Hormuz, according to CNBC. Brent crude also fell below $90 per barrel. Meanwhile, Bloomberg reported that Yemen's Houthi movement had claimed attacks on Saudi Aramco facilities in Jizan and Yanbu, suggesting that the conflict remains far from resolved.
The move came after WTI had been building a short-term uptrend since the beginning of July. A rebound from the $68 area on 2 July developed into a sustained rally, supported by an ascending trendline. That trendline held until the market peaked near $94.2, but it was broken on 27 July after a sharp gap lower, marking a clear shift in the near-term structure and leaving traders focused on whether the market can stabilize around the profile levels below.
Since then, price has been trying to move through two important levels within the current market profile: the POC at $84.7 and the lower profile boundary at $82.7. If this zone fails to hold and the decline extends, the green support level at $80.5 could become increasingly important. The gap formed on relatively modest trading volume considering the size of the move, which makes the area around the gap and nearby profile levels especially relevant for near-term positioning.
On the upside, the upper boundary of the market profile at $90.3 stands as the next potential target if the market turns higher. Beyond that, traders will be watching the red resistance level at $94.2. The RSI + MAs indicator currently reads 36, 55 and 60, indicating that the market remains unbalanced and is still searching for equilibrium.
The relatively low trading volume accompanying the gap suggests that the sell-off may have been driven largely by emotion, leaving room for buyers to return if the geopolitical risk premium begins to rebuild. For now, oil prices remain confined to a narrow range between the POC and the lower boundary of the market profile, where momentum for the next significant move may be building.