WTI crude oil is trading around $94.49, bouncing off the lows after a sharp selloff carved out a descending triangle pattern on the short-term time frame.

Price is now testing the area of interest between the 38.2% and 50% Fibonacci retracement levels, and how it responds here could determine whether the recent recovery has legs or whether the broader downtrend is set to resume.

The highlighted area of interest spans the 38.2% Fib at $94.11 up to the 50% level at $99.20, a zone that previously acted as support and could now flip to resistance. If sellers manage to cap any recovery attempt within this band, the downside targets come back into focus.

A rejection from the area of interest could send WTI back toward the swing low near the 0.0% Fibonacci level at $77.61, which represents the primary bearish target should selling pressure accelerate. An interim support level could be found along the way near the $83–$85 region before that floor is tested.

The 100 SMA remains below the 200 SMA, confirming that the path of least resistance is still to the downside. Price is currently trading between the two moving averages, so a failure to clear the 200 SMA could reinforce bearish momentum and keep the downside targets in play.

Stochastic is approaching the overbought region after a sharp climb from oversold levels, suggesting that bullish momentum could soon start to fade. A rollover from here would signal that sellers are ready to reassert control on a retest of the area of interest.

RSI is pushing higher but is nearing overbought territory as well, leaving limited room for further upside before exhaustion sets in. Should the oscillator turn lower from current levels, it would add further conviction to a bearish resumption targeting the $77.61 swing low.

Crude oil could continue to take cues from geopolitical conflict, though the latest release of IEA oil inventories could temporary keep gains in check while the US-Iran war wages on.