After a 14.5% drop this week, oil appears to have found a bottom. The decline was largely driven by easing geopolitical tensions, which removed much of the risk premium from crude prices.

From a technical perspective, the price found support at a major demand zone (green box). A demand zone is an area where strong buying interest previously entered the market, making it a level traders watch closely for potential rebounds. As shown by the blue circles, the price has bounced from this zone many times over the past few months, reinforcing it as a key support level.

Additionally, the bounce occurred around the 0.618 Fibonacci retracement of the July 2–July 23 move. Although the reversal wasn't triggered precisely at the 61.8% level, the surrounding area is considered a high-probability support zone where buyers frequently step in.

Zooming in to the 4H chart:

Another bullish signal comes from the 4-hour RSI, which has broken above its descending trendline. This breakout hints that bearish momentum is fading and adds confidence that the recent downtrend may have come to an end.

The entire structure starts to look to me like a bull flag:
From here, the next key test is the upper trendline of the flag. A move toward that resistance zone is the most logical next step, and the reaction there will likely determine whether this is just a bounce or the start of a larger move towards the 90’s and even above.