WTI Crude Oil Extends Decline, Testing Major Support at $91.58

West Texas Intermediate crude oil is testing a crucial support level at $91.58 per barrel as a strong bearish trend continues to dominate the market, according to a technical analysis published by Investing.com on Sept. 21. Key indicators show persistent downward momentum, signaling high risks for traders attempting to buy into the falling market.

Technical Breakdown

Analysis of the 5-hour chart indicates that WTI's price is at a significant technical juncture. The current level of $91.58 corresponds to the 38.2% Fibonacci retracement level, a key area of potential support.

However, momentum indicators suggest the downtrend remains firmly in place:

• The Relative Strength Index (RSI), at 32.85, is approaching oversold territory but has not yet provided a reversal signal.
• The Moving Average Convergence Divergence (MACD) shows a line value of -1.97, far below its signal line of -0.71, indicating that downward momentum is strong.
• The Average Directional Index (ADX) reading of 29.17 confirms a powerful trend, with the negative directional indicator (-DI) at 36.79 significantly outpacing the positive (+DI) at 11.90.

Market Structure and Key Levels

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The broader market structure reinforces the bearish outlook. The price was recently rejected from below the Ichimoku cloud (98.15-98.81 area), a bearish signal. Chart patterns, including a completed V-Top reversal and a recent Bearish Marubozu candlestick, further suggest that sellers maintain control.

Analysts are watching several key levels. If the $91.58 support fails to hold, the next major target for sellers is the $87.50 level. This price represents a confluence of the 200-period moving average and the 50% Fibonacci retracement. A break below that could expose deeper support at $82.21 (the 61.8% retracement level) and potentially the historical support zone around $78.00.

Outlook and Investor Caution

The analysis warns that attempting to buy at the current support level—a strategy often called "catching a falling knife"—is highly risky. The prevailing view is that any short-term rallies are likely to be fragile and may present better opportunities for sellers to enter new short positions.

The report emphasizes that traders should not rely on a single indicator, such as an oversold RSI, to time a market bottom. A true reversal would require confirmation from other signals, like a bullish MACD divergence or a clear break in the bearish market structure. The decline has also been accompanied by rising volume, indicating strong conviction behind the selling pressure.