WTI crude oil continues to slide lower, as the commodity remains trapped below a descending trend line that has been capping gains since mid-June.

Price recently attempted a bounce but ran into this overhead resistance, suggesting that sellers are still firmly in control and that the path of least resistance remains to the downside.

The Fibonacci extension tool shows where the next downside targets could be if bearish momentum picks up. The 38.2% extension is at $69.11, which could offer a brief pause for buyers. Below that, the 50% level sits at $67.98, followed by the 61.8% extension at $66.85.

A deeper selloff could push crude oil towards the 76.4% extension at $65.45, while a full measured move could bring price all the way down to the 100% extension near $63.19 if selling pressure intensifies.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. Price has also been trading beneath both indicators, and these could continue to act as dynamic ceilings on any corrective bounces, keeping the bearish bias intact.

Stochastic has turned sharply lower from the overbought zone following the most recent resistance bounce, reflecting a return in selling pressure. The oscillator has plenty of room to slide before reaching the oversold area, which means the correction could keep going until exhaustion sets in near the lower extension levels.

RSI is also heading south from its recent highs and is hovering around the midpoint, so price could keep following suit while sellers have the upper hand. A drop toward the oversold zone on RSI could coincide with a test of the deeper Fibonacci extension levels around $65.45 to $63.19.

WTI crude oil continues to unwind the war premium as the US-Iran ceasefire is holding up well, though some concerns about transport in the Strait of Hormuz are keeping losses in check.