Crude oil prices have shown a notable decline, influenced by various market factors and technical indicators. The price began the day with significant negativity, moving away from the 77.86 level, suggesting a continuation of the bearish trend. The immediate targets for this downtrend are set at 75.50 and 73.73. Stochastic indicators provide clear negative signals, reinforcing the bearish outlook within a well-defined bearish channel. The key level to watch is 77.86; staying below this level is crucial for the continuation of the current trend.

On the broader market front, oil prices climbed around 2% on Friday, buoyed by Iraq’s support for OPEC+ production cuts and short-covering by traders. Despite this, oil recorded a 4% weekly loss, marking the third consecutive week of declines. The rally was partly driven by traders addressing record short positions and was supported by confirmations from Saudi Arabia and Russia on continued output cuts. U.S. rig count reductions also hinted at future output decreases.

Technically, the WTI tests a key pivot at $77.31, with immediate resistance at $77.43 and further ceilings at $79.02 and $81.22. Support levels are marked at $75.35, with additional safety nets at $73.97 and $72.61. The RSI stands at 48.15, indicating a market that is neither overbought nor oversold, yet leaning towards bearish sentiment. The 50-day EMA at $79.02 is above the current price, signalling a potential bearish trend in the short term.