WTI oil futures (January delivery) have been stuck in a downtrend since mid-June when the price failed to surpass the 121.00 mark. Moreover, in the last few daily sessions, the commodity plummeted to a fresh 11-month low before recouping some losses.
The momentum indicators currently suggest that bearish forces remain in control. Specifically, the RSI is hovering beneath its 50-neutral mark, while the MACD histogram is below both zero and its red signal line.
If selling pressures persist, the September low of 76.25 could act as the first line of defense. A violation of the latter may trigger a retreat towards the 11-month low of 73.60. Failing to halt there, the price could decline further and form fresh multi-month lows, where the December 2021 support of 63.10 might curb further declines.
On the flipside, if buyers regain control, oil futures might ascend towards the recent resistance of 82.30. Piercing through this region, the spotlight could turn to 89.20 before the November high of 92.50 comes under examination. Conquering this barricade, the August high of 97.50 may prove to be a tough barrier for the price to overcome.
Overall, even though WTI oil futures appear to be gaining some ground after hitting an 11-month low, near-term risks remain tilted to the downside. Hence, a break above the 92.50 is needed to alter the short-term picture back to positive.