WTI crude oil is attempting a pullback from its recent lows, but the commodity is running into a wall of resistance from the descending trend line that has been capping gains since early April.

Price is currently hovering around $86.27 per barrel, and the trend line is bearing down overhead, leaving the door open for the selloff to resume.

The bounce appears corrective in nature, as price pulled back from the swing low area toward the 38.2% Fibonacci retracement level at $82.70. This level lines up closely with the descending trend line and could be enough to reinvigorate selling pressure. If sellers defend this zone, crude oil could roll back over and take aim at the lower Fibonacci extension targets.

The 50% extension sits at $80.55, followed by the 61.8% level at $78.40. A more sustained breakdown could drag WTI all the way to the 76.4% Fib at $75.73, while a full capitulation move could bring the 100% extension target at $71.43 into play.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance remains to the downside, and both moving averages are sloping lower while sitting well above current price levels, reinforcing their role as dynamic resistance on any attempted recovery.

Stochastic is pulling back sharply from the overbought zone after the recent bounce, suggesting that buying momentum is already fading. The oscillator has plenty of room to slide before reaching oversold territory, which means sellers could stay in control for a while longer.

RSI is similarly turning lower from elevated levels without yet reaching oversold territory, echoing the stochastic signal and keeping the bearish bias intact for now.

WTI crude oil continues to take cues from geopolitical headlines, with worsening tensions over the weekend and so far this week still weighing on sentiment while keeping the energy commodity price supported on supply concerns.