Oil prices extend declines as technical indicators signal oversold conditions but reinforce a near-term bearish outlook.
West Texas Intermediate crude trades below $68.00, hitting its lowest level since late February amid a bearish consolidation phase. The breakdown below the 200-day Simple Moving Average triggered further selling, validating a negative near-term outlook for oil prices.
The commodity fell past the 78.6% Fibonacci retracement of its January-March rally, with the MACD indicator remaining in negative territory at -0.43. However, the Relative Strength Index at 27.58 suggests oversold conditions, potentially limiting further downside in the short term.
Resistance levels are seen at $73.17 (200-day SMA), $77.67 (61.8% Fibonacci), and $84.34 (50% Fibonacci), while key support lies near $56.06, the year-to-date low from January.