WTI oil prices are entering a corrective phase following a sharp decline

Bears are pausing after a sharp three-day decline, during which oil prices dropped 5%, driven by easing tensions in the Middle East and a rise in U.S. crude inventories (as per the API report).

Oversold daily indicators and sideways movement in the Tenkan-Kijun lines suggest that bearish momentum may be weakening, potentially prompting traders to take partial profits.

This view is supported by the repeated failure of oil prices to close below the June 4 low of $72.46, which remains a solid support level. Another bounce could be likely, following the triple bottom seen in early August.

On the upside, initial resistance lies at $74.00/33, followed by $75.00/44, with the $76.00 zone (converged 10/20-day moving averages and the 4-hour Ichimoku cloud base) expected to cap gains, marking a healthy corrective move.

A decisive close below the $72.46 pivot and the $71.66 (August 5 spike low) level would expose the psychological $70 support.

Res: 74.00; 74.33; 75.00; 75.44
Sup: 72.46; 72.19; 71.66; 71.00