WTI crude oil could be forming a range as price bounced off support around the $10.50 per barrel level and might be setting its sights on the resistance at $18.20 per barrel.

The 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside or that support is more likely to break than to hold. Price has climbed past the 100 SMA as an early indicator of bullish pressure but has yet to test the 200 SMA dynamic inflection point.

Stochastic has already reached the overbought region to reflect exhaustion among buyers, and turning lower could confirm that selling pressure is taking over. ADX is above 25 to signal a potential trend, but volume remains subdued so consolidation could carry on.

Crude oil is still struggling to regain its footing after the sharp drop to negative levels last week. June futures are looking positive, along with contracts that have much later expiry dates, but doubts that economies could recover soon are weighing on risk appetite and energy demand.

Note that OPEC output cuts are due to start on May 1, which could spur a pop higher for the commodity once they kick in. For now, issues on oversupply are still lingering as storage facilities are operating at overcapacity.

The upcoming inventory reports could set the tone for short-term price action. A large build in inventory could reflect weak demand amid rising supply, which could spur another drop in the commodity price. On the other hand, a smaller than expected build or a reduction in stockpiles could sustain the latest bounce as it could signal that demand is picking up.

Apart from that, overall market sentiment related to US earnings reports could also impact the commodity’s direction for the next few days. Dismal results could confirm that the slowdown is set to persist, which could keep oil demand in check for much longer.