WTI crude oil has tumbled sharply from its swing high around $113 per barrel and is now testing the lower boundary of a wide horizontal range, with price currently hovering at $89.81.

This area of interest lines up with a support zone that has previously attracted buyers, so a bounce from here could be in the cards.

The 100 SMA has crossed below the 200 SMA to signal that the path of least resistance has shifted to the downside, or that the selloff is more likely to gain traction than to reverse. Both moving averages are sloping lower and converging near the $100 area, reinforcing this region as a formidable resistance ceiling on any recovery attempt. Price is currently testing the 200 SMA as dynamic support, which adds significance to the current level.

If the range support around the $85–$88 zone manages to keep losses in check, WTI crude oil could stage a recovery back toward the $100 area where the moving averages and the mid-range resistance converge. A break back above that level could open the door for a retest of the range top near $113.

However, a decisive break below current support could set off a measured move selloff roughly equal to the height of the range, potentially dragging price down toward the $65–$68 area — a zone that previously served as a launching pad for the broader rally.

Stochastic is on the rise from the oversold area, with both lines curling higher to suggest that buyers are stepping back in. The oscillator still has room to climb before reaching overbought territory, so price could follow suit in the near term.

RSI is also recovering from its recent lows and has substantial room to push higher before running into overbought conditions, keeping the door open for a more sustained bounce off support. Geopolitical developments could continue to influence oil price action, as Iran has closed the Strait of Hormuz again.