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West Texas Intermediate (WTI) Crude Oil edges higher on Monday as escalating tensions between the United States (US) and Venezuela add a modest geopolitical risk premium to Oil markets. At the time of writing, the US benchmark trades around $57.70, up nearly 2% on the day, extending its rebound after retesting year-to-date lows last week.

From a technical standpoint, the near-term outlook for WTI has turned slightly constructive, though the broader trend remains tilted to the downside, with prices down nearly 27% year-to-date.

On the daily chart, WTI is currently testing the $58.00-$59.00 zone, a former support zone now acting as resistance, aligned with the 21-day and 50-day Simple Moving Averages (SMAs). This confluence continues to cap immediate upside, with the $60.00 psychological level emerging as the next key hurdle should prices break higher.

On the downside, initial support is seen near $56.50, followed by the $55.00 round figure. A break below this area would reopen downside risks toward multi-year lows within the broader bearish structure.

Momentum indicators show early signs of improvement. The Relative Strength Index (RSI) hovers near the 50 mark after rebounding from near-oversold levels, while the Average Directional Index (ADX), around 22, is trending higher, suggesting that trend strength is gradually building.

The Moving Average Convergence Divergence (MACD) line remains below the Signal line and under zero, while the negative histogram contracts, suggesting fading downside momentum.

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