WTI crude oil formed lower highs and found support at the $65.80 per barrel level, creating a descending triangle pattern on its 1-hour chart.

Price is bouncing off the triangle bottom and looks ready for a move back up to the resistance around $70-72 per barrel. This is in line with the 200 SMA dynamic inflection point, which adds to its strength as a ceiling.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the triangle top is more likely to hold than to break. This might also signal that a breakdown is possible, setting off a drop that’s at least the same height as the triangle pattern.

Stochastic is still heading up to show that buyers have some energy left to take crude oil back up to the triangle resistance. However, the oscillator is nearing the overbought zone to signal exhaustion.

RSI has more room to climb, so price could keep following suit until overbought conditions are met.

WTI crude oil is staying supported as traders anticipate a draw of 0.8 million barrels in EIA inventories after the earlier build of 3.6 million barrels. This would reflect a strong pickup in demand or a possible drop in supply.

Keep in mind, though, that global glut concerns remain in play as the OPEC+ recently agreed to increase output by 400K barrels per day starting this month until December. This comes even as more economies are implementing and extending lockdown measures in an effort to curb the spread of the Delta variant, leading to lower fuel and energy demand.

The technical committee is meeting this week, and recommendations to keep production in check could boost the commodity price. The lack of any action, on the other hand, could mean downside for crude oil.