WTI crude oil has broken below its short-term ascending trend line, signaling that the recent climb may be running out of steam and that a reversal could be in the works.

Price is currently hovering around $99.21 after pulling back sharply from the $105.46 swing high, and a corrective bounce to the Fibonacci retracement levels could draw in fresh sellers looking to join the downtrend.

The Fibonacci retracement tool drawn from the $96.87 swing low to the $105.46 swing high highlights the key levels where sellers could be waiting. The 38.2% Fib sits at $100.15, which is the nearest overhead hurdle and aligns closely with the broken trend line, which could be a classic resistance-turned-support-turned-resistance scenario.

The 50% level at $101.16 offers another battleground, while a deeper retracement could reach the 61.8% Fib at $102.18, which converges with the descending triangle resistance formed by the recent swing highs.

If any of the Fib levels hold as a ceiling, WTI crude could resume the slide back toward the $96.87 swing low or lower.

The 100 SMA has crossed below the 200 SMA, confirming that the path of least resistance is to the downside and that the bearish shift carries some weight. Price has also slipped beneath both indicators, which are now poised to act as dynamic resistance on any bounces.

Stochastic has bounced from the oversold region and is curling higher, suggesting that a near-term corrective move is underway. However, the oscillator has plenty of room to climb before reaching the overbought area, meaning the pullback to the Fibs could have more room to play out before sellers regain control.

RSI, on the other hand, remains relatively subdued and has yet to make a meaningful recovery, hinting that buying interest is still limited and that sellers could reassert themselves once the retracement runs its course.

Geopolitical headlines pointing to the possibility of the Strait of Hormuz reopening soon could bring more downside pressure on crude oil as supply concerns ease.