WTI crude oil continues to trend lower as it moves inside a descending trend channel on the 1-hour chart. Price just bounced off the bottom and is currently hovering at the mid-channel area of interest.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is still to the downside. In other words, the selloff is more likely to resume than to reverse. Price also seems to be finding resistance around these moving averages also.

RSI is still pointing up to indicate that buyers are in control of crude oil action and could have enough energy to push for a test of the channel resistance around $70 per barrel. Stochastic is also heading up to indicate that bulls are in control, but the oscillator is also nearing overbought levels to reflect exhaustion.

If the mid-channel area of interest or the top of the channel keep gains in check, crude oil could revisit the channel support around $67 per barrel. Stronger selling pressure could even lead to a downside break. On the other hand, a move past the channel top and $70 per barrel psychological mark could lead to a continuation of the longer-term climb.

Crude oil was tossing and turning in the previous week due to market updates and changing market sentiment. The EIA report revealed a larger buildup in stockpiles than expected while, but Baker Hughes revealed another reduction in rig counts that could mean slower output in the coming weeks.

However, perhaps the bigger mover for crude oil action has been the US drive to halt Iranian imports. China said that it will not follow the US lead to halt purchases from Iran while the OPEC reported rising supply from cartel members and also from Russia. Venezuela also reportedly sent more oil to the US even with production woes.