WTI crude oil futures found strong resistance near the medium-term descending trend line at 93.70, sliding towards the 50-day simple moving average (SMA) in the aftermath. The MACD oscillator is still standing above its trigger and zero lines; however, the stochastic is diving towards the oversold territory, suggesting more losses in the market.
Should prices decline further, immediate support could be found around the 20-day SMA at 84.40. Then, a leg below that level could meet the eight-month trough of 76.25, before the focus shifts to 65.90, registered in December 2021.
However, if the market manages to regain positive momentum, the strong obstacle of 93.70, which coincides with the downtrend line, could offer nearby resistance ahead of the 200-day SMA at 97.14 and the 97.82 barrier. A significant close above the latter could raise chances for more increases.
In the medium-term, the outlook remains negative since the price holds below the downtrend line and the 200-day SMA. Only a close above those boundaries will switch the outlook to positive.