WTI crude oil has broken down from a symmetrical triangle formation on the short-term time frame, suggesting that a downtrend of the same height as the pattern could follow.

Price has sliced sharply below the triangle support, confirming a bearish shift in momentum, and is now hovering near the $89.57 swing low after a significant leg lower. A pullback from current levels appears to be underway, and the Fibonacci retracement tool highlights where sellers could be waiting to re-enter the downtrend.

The 38.2% Fib sits at $95.58, which aligns closely with the broken triangle support and could now act as resistance. The 50% level at $97.43 offers another area of interest, while a deeper correction could reach the 61.8% Fib at $99.28. The 100% retracement level at $105.28 marks the top of the measured move and serves as the ultimate ceiling.

The 100 SMA (blue) has crossed below the 200 SMA (red), confirming that the path of least resistance is to the downside and that the selloff is more likely to gain traction than to reverse. Price has also fallen well beneath both indicators, reinforcing the bearish bias.

Stochastic has plunged deep into the oversold zone, however, reflecting exhaustion among sellers and supporting the case for a near-term bounce. If the oscillator turns higher and price tests one of the Fibonacci levels, a bearish reversal there could signal that the downtrend is resuming.

RSI is also sitting near oversold territory with limited room to slide further, suggesting a corrective move higher may be in the cards before bears regain full control. A rejection from the midline on RSI would confirm that selling pressure remains dominant and that crude oil could extend losses beyond current levels.

Positive geopolitical developments pointing to progress in reaching a US-Iran deal that could eventually reopen the Strait of Hormuz have led to an unwinding of the war premium for crude oil.