Crude Oil Plunges Towards $91 as Bears Take Control

WTI crude oil has started a sharp correction downwards from its recent high of $106.75, prompting questions about whether key support levels can spark a recovery.

The price has traded below a bullish trend line with support at $100.50 on the 4-hour chart of XTI/USD and also dipped below $100.00 and $98.00 to enter a short-term bearish zone.

Looking at the technical analysis, the price even traded below the 100 simple moving average (red, 4-hour) and tested the 50% Fibonacci retracement level of the upward move from the $80.11 swing low to the $106.74 high.

If the bears remain in action, the price could test the $91.20 level, with main support near the 61.8% Fibonacci retracement and the 200 simple moving average (green, 4-hour) at $90.00.