WTI Price Analysis: Losses to extend below $90.00, triangle breaks on the downside

• Oil prices have given a downside break of the symmetrical triangle that indicates a volatility expansion ahead.
• A decisive downside break of $90.00 will unleash the bears’ potential.
• The RSI (14) has shifted into the bearish range of 20.00-40.00.

West Texas Intermediate (WTI), futures on NYMEX, is oscillating in a narrow range of $89.00-91.03 in the Asian session. The black gold has remained vulnerable after surrendering the critical support of 91.60 on Wednesday. The oil prices are sneaking around the psychological support of $90.00 and may deliver a sheer downside move if violate the same unhesitatingly.

On the daily scale, the oil prices have given a downside break of the symmetrical triangle chart pattern. The upward sloping trendline of the above-mentioned chart pattern is placed from July 14 low at $88.34 while the downward-sloping trendline is plotted from July 8 high at $102.77.

The black gold has faced selling pressure while attempting to cross the 20-period Exponential Moving Average (EMA) at $96.35. Also, the 50-EMA at $101.04 is trading higher, which signals that the short-term trend is bearish.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bearish range of 20.00-40.00, which adds to the downside filters. The momentum oscillator is not displaying any sign of divergence and oversold situation.

A downside break of Wednesday’s low at $89.88 will drag the oil prices towards the 10 October 2021 high at $85.00, followed by January 7 high at $79.97.

Alternatively, bulls could defend the escalating downside odds and may drive the black gold towards April 21 high at $105.24 and June 2 low at $109.96 after surpassing Friday’s high at $100.95 confidently.

WTI daily chart