Crude Oil Remains in Downtrend, Key Support Test Looming

The WTI crude oil futures contract remains confined within a falling price channel visible on the 4-hour chart, staying in the broader downtrend that originated from the 87.07 high.

Consolidation Within Downtrend

As long as the price remains within the confines of the bearish channel, the recent bounce from the 76.34 low can be viewed as a consolidation phase within the broader downtrend.Another leg lower to retest the 76.34 support appears likely over the coming days as the consolidation period plays out.

Downside Risks on Support Break

A breakdown below the 76.34 support would likely signal that the downtrend from 87.07 has resumed, with the next key targets on the downside located in the 75.70 and 72.00 areas.If sellers can push WTI below the 72.00 level, it would further strengthen the bearish outlook and open the door for an extended downside move.

Upside Hurdles

On the flip side, a bullish breakout above the falling channel resistance could potentially trigger an upside move toward the next key resistance at 80.04.If buyers can push WTI above the 80.04 barrier, it would likely indicate that the downside move from 87.07 has completed at the 76.34 low.In this scenario, the next upside targets for crude oil would be the 80.40 and 84.00 levels.

Key Levels to Watch

For now, the key levels to watch in WTI crude oil are the 76.34 support, the falling channel resistance, and the 80.04, 80.40, and 84.00 resistance barriers.

As long as the price remains within the bearish channel, the overall technical bias will remain tilted to the downside, with the potential for a retest of the 76.34 low and a possible continuation toward the 72.00 area if this support is taken out.

However, a breakout above channel resistance and the 80.04 level would be a significant technical event, likely opening the door for a more substantial recovery toward the 80.40 and 84.00 targets as the downtrend from 87.07 is negated.

WTI crude oil remains in a technical downtrend, with the direction of the next big move likely to be determined by the price action around the key 76.34 support in the sessions ahead.