WTI crude oil is trending down on its 4-hour chart, forming lower highs connected by a descending trend line that’s been holding since mid-November. Price looks ready to test this resistance level again.

Applying the Fibonacci retracement tool shows where more sellers might be waiting. The 61.8% Fib lines up with the trend line and 100 SMA dynamic inflection point at $73 per barrel. Price could also find a ceiling at the 50% Fib near the $71 per barrel major psychological mark.

The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that the selloff is more likely to resume than to reverse. The gap between the indicators is widening to reflect strengthening selling pressure.

RSI is still on the move up to show that buyers have the upper hand and could keep the correction going until overbought conditions are met. Stochastic has already reached the overbought zone, so turning lower would confirm a return in selling pressure.

If any of the resistance levels hold, crude oil could resume the drop to the swing low at $62.66 per barrel or lower.

Crude oil recovered from its selloff somewhat, as Iranian Oil Minister Ihsan Abdul-Jabbar said he expects oil prices to reach over $75 per barrel, according to a state news agency. Weakening prospects of higher exports from Iran also lifted the commodity price.

Apart from that, Saudi Arabia also raised January official selling prices for all crude grades sold to Asia and the United States by up to 80 cents from the previous month.

However, concerns about the Omicron variant remain, and this could be enough to keep businesses and consumers cautious. This could mean lower demand for fuel and energy commodities, as well as weaker risk appetite that could weigh on higher-yielding assets.