WTI crude oil is flashing bearish signals on the short-term time frame, as price appears to be carving out a head and shoulders reversal pattern.

The formation features a left shoulder around the $100 area, a head near the $112 swing high, and a right shoulder currently taking shape closer to $100. The neckline support sits in the $95–$97 zone, and price is already pressing dangerously close to this floor at $96.87.

A decisive break and close below the neckline could confirm the pattern and set off a measured move to the downside equal to the height of the formation (roughly $15–$17) which would project a drop toward the $80 area or lower.

The 100 SMA has crossed below the 200 SMA in a bearish crossover, confirming that the path of least resistance has shifted to the downside. Both indicators are now sloping lower, with price trading beneath them and the SMAs acting as dynamic resistance on any attempted recovery.

Stochastic has plunged deep into oversold territory, with the main line and signal line bunched together near the lows. While this reflects extreme bearish pressure in the short term, a crossover to the upside from this region could trigger a brief corrective bounce before the broader selloff resumes.

RSI has similarly tumbled toward the oversold threshold, suggesting that sellers have been aggressive in their push lower. The oscillator still has some room before reaching extreme oversold readings, meaning that bears could retain control for a bit longer before buyers step in.

A bounce back toward the broken neckline and moving averages in the $99–$100 area could serve as a retest opportunity for sellers looking to join the downtrend at better levels.

Geopolitical headlines could continue to influence crude oil movements, particularly speculations about another round of peace talks or reports of further escalation that could put the ceasefire at risk.