• WTI is seen consolidating the recent sharp decline to its lowest level since late February.
• A break below the 200- SMA favors bearish traders and backs the case for further losses.
• The oversold RSI warrants some caution before positioning for an extension of the downfall.

West Texas Intermediate (WTI) – the benchmark US Crude Oil price – enters a bearish consolidation phase near its lowest level since late February, set earlier this Friday. The commodity trades below the $68.00 mark through the first half of the European session, with bears looking to extend the fall further below the 78.6% Fibonacci retracement level of the January-March upswing.

The recent breakdown below the technically significant 200-day Simple Moving Average (SMA) was seen as a key trigger for bearish traders and validates the near-term negative outlook for Crude Oil prices. Moreover, the Moving Average Convergence Divergence (MACD) indicator remains in negative territory with the latest reading at -0.43. However, the Relative Strength Index (RSI) sits at 27.58, hinting at oversold conditions.

Momentum indicators, in turn, make it prudent to wait for some near-term consolidation or a modest bounce before positioning for an extension of the well-established downtrend. Any meaningful recovery attempt, however, is likely to confront a hurdle near the 200-day SMA at $73.17, which forms a key supply band that would need to be reclaimed to ease the bearish bias. Above these, the 61.8% Fibo. at $77.67 and the 50% level at $84.34 mark subsequent barriers, ahead of denser resistance at the 38.2% retracement at $91.02 and the 23.6% level at $99.27.

On the downside, the main structural support is located near $56.06, or the year-to-date low touched in January, 0where a more substantial floor could emerge if selling persists.

(The technical analysis of this story was written with the help of an AI tool.)

WTI daily chart