WTI barrel falls below $90Us Crude Oil CFDFOREXCOM:USOILFOREXcomIt has been a difficult start to the week for WTI price action, as crude oil is posting a decline of nearly -2.00% at the beginning of the week, highlighting a consistent weakness that has started to become more evident on the chart. For now, selling pressure continues to dominate the market as investors remain focused on reports suggesting that the United States and Iran may be moving closer toward an agreement aimed at reducing geopolitical tensions. Part of the market is even beginning to speculate about a potential reopening of the Strait of Hormuz, which has once again reduced concerns about disruptions in oil transportation and has started to stabilize global supply expectations. The risk premium that previously supported demand for oil barrels has started to fade, affecting the bullish sentiment that dominated the market in recent sessions. As long as this dynamic remains in place and optimism surrounding a potential peace agreement continues to improve, selling pressure on WTI could remain relevant during the next trading sessions. Relevant sideways range continues to dominate price action Indecision around WTI price movements has been evident over recent weeks. Although the price still maintains a broader long-term bullish structure, it also continues to trade within a medium-term sideways range defined by resistance near the $110 zone and support around the $87 area. As long as price fails to break either of these levels, it will remain difficult to confirm the development of a stronger directional trend over the coming weeks. If selling pressure continues to dominate, a new bearish trendline could begin to emerge in the short and medium term, especially if the market keeps reducing the geopolitical risk premium linked to the Middle East. RSI Recent RSI movements have started to remain below the key 50 neutrality line, suggesting that bearish momentum is becoming more relevant within the market. As long as this behavior continues, selling pressure could continue strengthening in the short term. MACD MACD histogram movements are showing a similar scenario, remaining below the 0 neutrality line. This reflects that short-term moving averages continue favoring a bearish structure, reinforcing the current role of selling pressure within the market. Key levels to monitor $110: Remains the most important resistance level on the chart and represents the upper boundary of the current sideways range. Price action returning to this zone could reactivate stronger bullish sentiment and extend the bullish trend that dominated WTI movements months ago. $96: Important neutrality zone that aligns with a key retracement level on the chart and with the barrier marked by the 50-period moving average. As long as price continues fluctuating near this level, the current indecisive phase could remain in place and continue supporting the sideways structure. $87: Represents the most important support level from previous weeks and stands as the key bearish barrier on the chart. Price action breaking below this level could not only end the current consolidation phase, but also open the door for a more consistent bearish trend during the coming sessions. Written by Julian Pineda, CFA, CMT – Market Analyst