WTI crude oil appears to be bouncing off its descending triangle resistance at the $70 per barrel mark and is now setting its sights back on support at $66.85 per barrel.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that resistance is more likely to hold than to break. Sustained bearish pressure could even spur a break below support and a drop that’s the same height as the triangle pattern, which spans roughly $9.

Stochastic is heading down but also dipping into the oversold region to reflect exhaustion among sellers, so turning higher would suggest a return in bullish pressure. A break above the triangle top could lead to a rally that’s the same size as the triangle formation. RSI has more room to head south, though, so bearish pressure could stay in play for much longer.

WTI crude oil appears to be returning gains from earlier this week, as hopes are running high for a ceasefire between Israel and Hezbollah. This would further ease global supply concerns for the commodity, as production facilities could be facing less risk of disruption.

Meanwhile, Trump’s Treasury Secretary pick also appears to be lifting risk assets, as stock markets cheered the selection of Scott Bessent who is likely to prevent an all-out trade war from happening. In turn, this could mean sustained demand for energy commodities in the long run.

For now, traders could also take cues from EIA and API inventory numbers, as a build in stockpiles would point to weaker demand conditions and possibly result to further crude oil weakness. On the other hand, a reduction could signal elevated consumption levels or weaker supply figures, possibly leading to gains for the commodity.