• WTI futures drop to their lowest level since January 17

• Momentum indicators are heavily tilted to bearish side

WTI oil futures (October delivery) have been in a steady retreat following their rejection at the 200-day simple moving average (SMA) in mid-August. On Wednesday, the price fell to a fresh seven-month low before finding its feet a tad above the 70.00 psychological mark.

Should the bears attempt to push the price lower, they need to initially claim 72.03, which is the 78.6% Fibonacci retracement of the 67.97 – 86.92 upleg. A violation of that zone could pave the way for the 2024 low of 69.55. Further declines could then cease at the December 2023 bottom of 67.97.

On the flipside, bullish actions could propel the price towards the 61.8% fibo of 75.21. Surpassing that zone, the price may advance towards the 50.0% Fibo of 77.44, which coincides with the 200-day SMA. Even higher, the 38.2% Fibo of 79.68 could prevent further upside attempts.

Overall, WTI oil futures have been on a slippery slope in the past few sessions, dropping to a fresh seven-month low. However, their failure to extend the recent decline might lead to the formation of a double bottom, which is indicative of a reversal pattern.