WTI crude oil has been grinding lower since May, with price action forming a descending trend line that connects the lower highs along the way.

The commodity is currently testing this trend line resistance, which converges closely with the 38.2% Fibonacci retracement level at $77.19, an area that could attract fresh sellers back into the market.

If the trend line and this Fib level hold as a ceiling, WTI could resume its slide towards the 0.0% level around $67.08, where a previous swing low was established. A break below could open the door to even lower levels should bearish momentum pick back up.

The 50% Fib level is at $80.32, close to where price has recently been hovering, while a larger bounce could reach the 61.8% Fib at $83.44 near the 100 SMA dynamic resistance. This could be the line in the sand for a bearish pullback within the broader downtrend.

On the subject of moving averages, the 100 SMA remains below the 200 SMA to confirm that the path of least resistance is still to the downside. Price is trying to climb back above both indicators, but the gap between the SMAs continues to widen, keeping the longer-term bearish bias intact.

Stochastic is up in the overbought region, reflecting exhaustion among buyers after the latest leg higher. Turning lower from here could spark a return in selling pressure, especially with the oscillator having plenty of room to fall before reaching oversold territory.

RSI is also hovering near overbought territory, so a pullback in the indicator could accompany further downside in price while sellers look to regain control.

Failure to clear the descending trend line and the 38.2% Fib level could keep WTI crude oil capped, potentially extending the broader downtrend if sellers step back in at current resistance. Geopolitical headlines could continue to drive crude oil direction, as further escalation could ramp up supply risks again.