Crude Oil Downtrend Resumes After Breaking Key Support

The WTI crude oil futures contract has broken below the key 76.01 support level, plunging as low as 73.65 in recent trading sessions. This technical breakdown suggests that the broader downtrend from the 87.07 high on April 5th has resumed.

Further Downside Risks Emerge

Following the break of the 76.01 support, the next key downside targets for WTI crude oil are located in the 72.00 and 70.50 areas.The path of least resistance for the commodity appears to be further losses in the coming days as the bearish momentum builds.

Resistance Levels to Watch

In the near-term, the first level of resistance to watch on the topside is the 75.00 handle. A breakout above this level could potentially see WTI crude retrace back toward the falling trendline visible on the 4-hour chart.However, only a move back above this trendline would likely ease the downside pressure and shift the technical bias back to a more neutral stance.

Downside Momentum Building

For now, the technical outlook has shifted to a more bearish bias following the breakdown below the 76.01 support. The path of least resistance appears to be further losses toward the 72.00 and 70.50 targets.Only a move back above the 75.00 resistance and the falling 4-hour trendline would ease the downside pressure and potentially signal a more significant rebound.

Key Levels to Watch

The key levels to watch in WTI crude oil are the 72.00 and 70.50 downside targets, along with the 75.00 resistance and the falling 4-hour trendline resistance.

As long as the price remains below 75.00, the overall technical bias will remain bearish, with the potential for a more significant decline toward the 70.50 area if the 72.00 support is taken out.

The downtrend in WTI crude oil has resumed after the recent breakdown below the 76.01 support. Traders will want to closely monitor the price action around the key support and resistance levels highlighted to determine if the downside momentum will continue to build or if a more significant rebound could unfold.