WTI crude oil is flashing bearish signals after breaking down from a symmetrical triangle formation on the short-term time frame, as price has slipped below the pattern’s lower boundary and is currently trading around $93.55.

The breakdown from this converging structure suggests that sellers are gaining the upper hand following the prolonged period of consolidation.

The symmetrical triangle had been compressing price action between a descending upper trendline and a rising lower trendline since early March, but the recent close beneath the latter confirms a bearish resolution.

If selling pressure continues to build, crude oil could be on its way toward the next nearby support levels, with the $90.00 psychological level serving as an immediate area of interest. A deeper pullback could then bring the $80.00 region into focus, which has previously acted as a significant floor.

On the moving averages front, price has slipped below the 100 SMA and is now threatening to test the 200 SMA to the downside. The gap between the two indicators has been narrowing, hinting at a potential bearish crossover that could reinforce the downside bias if confirmed. Should the 200 SMA give way as dynamic support, it would further validate the bearish breakout from the triangle.

Stochastic has dipped into the oversold area, reflecting exhaustion among sellers in the near term and raising the possibility of a brief corrective bounce before the downtrend resumes. Any rebound from here could be used as a selling opportunity, particularly if price revisits the broken triangle boundary as new resistance.

RSI is also hovering near oversold territory, though it still has some room to slide further before a meaningful recovery kicks in. Until the oscillators confirm a bullish reversal, the path of least resistance for WTI crude oil remains to the downside.

Crude oil appears to be unwinding positions from the US-Iran war on expectations of de-escalation now that Israel pledged to avoid further strikes on Iranian oil facilities.