WTI crude oil has been consolidating inside a symmetrical triangle pattern on the short-term time frame, with price recently pulling back from the resistance area near the $100.00 per barrel mark and sliding toward the triangle’s rising support line.

At $97.29, the commodity is now testing this floor, and the direction of the next breakout could set the tone for the weeks ahead.

If the triangle support holds, WTI crude oil could attempt another climb toward the converging resistance line near $100.00, which has capped gains repeatedly over the past several weeks. However, a decisive break below the formation could open the door to a sharper decline, with the next meaningful support seen around the $90.00 area.

The 100 SMA is currently below the 200 SMA, suggesting that the path of least resistance is to the downside or that the selloff could gain traction from here. Price is also hovering around both indicators, which are now converging near the triangle support, making this a critical inflection zone to watch.

Stochastic has dipped into the oversold area following the latest leg lower, and the oscillator appears to be attempting a turn higher. If it crosses up from here, that could signal a short-term bounce back toward the triangle resistance. On the other hand, a failure to recover could keep bears in the driver’s seat.

RSI is trending in the lower range without yet reaching oversold conditions, suggesting that sellers still have room to push prices further before exhaustion sets in.

From a fundamental standpoint, any de-escalation in Middle East tensions could remove a key supply risk premium from oil prices, potentially accelerating a breakdown below triangle support and exposing WTI crude oil to steeper losses ahead. Reports of a draft agreement between the US and Iran, involving a potential reopening of the Strait of Hormuz, are currently easing global supply concerns.