WTI Crude Oil Price Analysis For August 10

WTI crude oil is running into resistance at its long-term descending trend line, currently capping price near the $78.70 per barrel mark.

The commodity had been carving out a small rising wedge pattern off the early August lows, but that recovery attempt now appears to be stalling right at this diagonal ceiling, raising the risk that the broader downtrend could resume.

The Fibonacci extension tool, drawn from the recent swing high to the swing low, points to several downside targets should sellers regain control. The 0% level sits at $79.61, close to where price is currently struggling, while the 38.2% extension is at $74.72.

A deeper slide could reach the 50% level at $73.21, followed by the 61.8% extension at $71.70. If bearish momentum really accelerates, the 76.4% level at $69.84 and the 100% extension at $66.82 could come into focus as longer-term bearish objectives.

On the moving average front, the 100 SMA remains below the 200 SMA, keeping the path of least resistance tilted to the downside. Price is also struggling to reclaim both indicators from below, which could allow them to act as dynamic resistance on any further upside attempts.

Stochastic has climbed back into overbought territory, suggesting the recent bounce may be running out of steam and that a turn lower could trigger a fresh wave of selling. RSI, meanwhile, still has some room before reaching overbought levels, though it too appears to be leveling off, hinting that buyers may be losing their grip.

Should the descending trend line hold as resistance, WTI crude oil could resume its slide toward the Fibonacci extension levels outlined above. A decisive break above the trend line, on the other hand, would ease immediate bearish pressure and could open the door to a retest of higher levels instead.

WTI crude oil could continue to unwind the war premium on the lack of fresh escalation between the US and Iran, keeping markets hopeful that an agreement could be reached soon or that negotiations could at least resume.