WTI Crude Oil Slumps After Breaking Down from Rising Wedge Pattern

WTI crude oil has recently fallen sharply after breaking down from its rising wedge pattern. The commodity had been consolidating within converging trend lines for a couple of weeks before this breakdown, which confirmed a shift in trend. Price dropped from the wedge breakdown point near $82.00 to current levels around $75.19, with the swing low near $74.30 marking the support level.

The Fibonacci retracement tool highlights where sellers could return to push the pair lower. The 38.2% Fib is at $79.11, close to the 100 SMA, while the 50% level sits at $80.59. A deeper pullback could reach the 61.8% Fib at $82.08, which lines up near the 200 SMA and the broken wedge support.

Price is also trading below both moving averages, so these could act as dynamic resistance on any recovery attempts. The stochastic indicator is deep in oversold territory, reflecting exhaustion among sellers, and could be due for a bounce that lines up with a pullback toward the Fib levels.