WTI crude oil has taken a sharp turn to the downside after breaking below its long-term ascending trend line, a bearish development that could signal the end of the prolonged uptrend that had been in place since early March.

Price is currently hovering around the $104.35 area, attempting a bounce after the steep selloff from the swing high near the $105.30 level.

However, this recovery looks more like a pullback to the broken trend line than a genuine reversal, as the former support could now act as dynamic resistance. The Fibonacci extension tool drawn from the pullback could determine the next bearish targets.

The 38.2% Fib is at $94.66, followed by the 50% level at $91.37. A deeper drop could reach the 61.8% Fib at $88.08, with an even larger slide potentially extending to the 76.4% Fib at $84.01 or all the way down to the full retracement at $77.44.

The 100 SMA has crossed below the 200 SMA, confirming that the path of least resistance has shifted to the downside and that the selloff is more likely to gain traction from here. Both moving averages are now sloping lower and converging near current price, reinforcing their potential role as dynamic resistance on any recovery attempts.

Stochastic has bounced sharply from the oversold zone and is heading higher, suggesting that a near-term corrective bounce may still have room to run before sellers regain the upper hand. A roll back over from the overbought region could mark a fresh entry point for bears.

RSI is also climbing from deeply oversold territory, echoing the stochastic signal and indicating that the pullback could test nearby resistance before the broader downtrend resumes toward the lower Fibonacci targets.

US-Iran developments could continue to influence crude oil behavior, as supply risks from the Strait of Hormuz blockage could keep prices elevated.