WTI Crude Oil Tests Resistance After Descending Wedge Breakdown

WTI crude oil has broken down from a descending wedge pattern that formed in late July and early August. The breakdown took price below the rising trend line support near $80.00, but buyers have since stepped in to spark a recovery attempt.

As WTI attempts to push through resistance at the 38.2% Fibonacci retracement level of $81.74, it may also encounter the former wedge support and 50% Fib level of $82.81 or even the 61.8% Fib at $83.89 near the lower wedge trend line.

However, a rejection at these levels could reinforce the breakdown and drag price back toward the $78.26 low or lower.