WTI crude oil crashed below the bottom of its range on the 4-hour chart to signal that a continuation of the longer-term slide is underway. Price could fall by around the same height as the rectangle from here.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to pick up from here. The gap between the indicators looks ready to widen again to reflect stronger selling pressure.

Volume remains subdued, however, so the drop might not gain much traction. Stochastic is also hovering close to the oversold region to signal exhaustion among sellers, and turning higher could suggest a return in bullish momentum. ADX is climbing to signal a return to trending market conditions.

Crude oil took fresh hits on renewed oversupply fears, coming off the set of downbeat reports printed in the past week. Recall that the IEA predicted much lower demand for the commodity than initially forecast while the EIA printed a larger build in stockpiles.

Analysts point to the glut in the Cushing storage facility as the main culprit for the breakdown, signaling that the drop in demand for the energy commodity is far from over. After all, the virus outbreak has shuttered several businesses and transportation, and this could carry on for weeks or even months.

Although the OPEC already agreed to trim production over the course of the year, many are pointing to how producers are pumping more oil ahead of the cuts to start on May 1. Besides, many deem that the reduction is not enough to shore up prices as demand would likely remain subdued even with lower supply.