WTI Crude Oil Price Analysis For June 10

WTI crude oil continues to slide within a descending channel on the short-term time frame, as the commodity struggles to break free from the series of lower highs and lower lows that have defined price action since late April. The channel boundaries have been respected so far, keeping sellers firmly in control of the trend.

Price recently bounced off the channel bottom near the swing low but has since rolled over again, currently trading around $88.72 per barrel. The Fibonacci extension tool drawn from the recent swing high to the swing low shows where sellers could be eyeing the next targets on the way down.

The 38.2% extension is at $89.24, which is now acting as nearby resistance. Below current levels, the 50% extension sits at $86.91, followed by the 61.8% level at $84.58. A deeper selloff could reach the 76.4% extension at $81.70, while a full breakdown could bring the 100% target at $77.04 into play.

The 100 SMA has crossed below the 200 SMA to confirm that the path of least resistance is to the downside and that the bearish momentum is more likely to gain traction from here. Both indicators are sloping downward and hovering above price as dynamic resistance, adding to the selling pressure on any attempted recovery.

Stochastic has bounced from the oversold zone and is turning higher, suggesting that a short-term pullback or consolidation could be in the cards before sellers resume the downtrend.

RSI is also attempting to recover from oversold levels, so there may be a brief corrective bounce before bearish pressure picks up again. A failure to push back above the 50% Fib extension, however, could keep crude oil on course for the deeper retracement targets.

WTI crude oil appears to be unwinding some of its war premium on account of ceasefire optimism, though fresh strikes by Iran and retaliatory threats from Trump are still keeping global supply concerns in play.