WTI crude oil appears to have formed a double top pattern on its short-term chart, signaling that the recent recovery from the lower support zone may be running out of steam.

Price has been struggling to sustain gains above the $66.00 area, with two successive peaks near that level suggesting that sellers are defending this ceiling with conviction. The commodity is currently trading around $65.56, just below the 100 SMA dynamic support that has now flipped to act as resistance.

If the double top formation plays out, crude oil could break below the neckline support near the $65.00 area and make its way down to the lower blue shaded zone around $62.00–$63.00, which has previously acted as a strong area of interest. A break below that region could open the door to even deeper losses.

The 100 SMA has crossed back below the recent highs and price is now struggling to hold above it, suggesting that bullish momentum is fading. The 200 SMA, however, is still trending higher beneath current price, which means that the longer-term upside bias has not been entirely abandoned. Should price slide toward this dynamic support, it could attract dip buyers looking to re-engage the broader uptrend.

Stochastic has been oscillating near the midrange and appears to be turning lower from around the 50 level, suggesting that sellers could be gaining the upper hand in the near term. The oscillator has room to slide before reaching the oversold area, which could allow for further downside pressure.

RSI is also drifting lower with plenty of ground to cover before reaching oversold conditions, so price could keep following suit while sellers maintain control of the short-term direction.