WTI crude oil could be in for a reversal from its climb as price failed in its past two attempts to break past the $46.50 per barrel minor psychological mark. This creates a double top pattern with a neckline around $44 per barrel.

A break below support could be enough to confirm that a downtrend is in order, possibly lasting by the same height as the chart formation. The 100 SMA is above the 200 SMA for now, but the gap between the indicators has narrowed significantly to reflect slowing bullish momentum and a potential bearish crossover.

Crude oil is still trading above both indicators, though, so there is still plenty of bullish pressure left. These moving averages could also hold as dynamic support levels.

Stochastic is turning higher to indicate that buyers are regaining the upper hand without even seeing oversold conditions. RSI has room to move down before reaching the oversold area, so sellers could stay in control for a bit longer.

Crude oil sold off early last week when the Department of Energy reported a draw of 0.7 million barrels, lower than the expected reduction of 1.7 million barrels and the earlier drop of 0.8 million barrels.

However, the commodity managed to recover when the OPEC+ agreed to cut production by 500K barrels per day starting January next year, keeping the global glut in check.

The upcoming inventory figures from the API and EIA could determine where crude oil prices are headed next. A build in stockpiles could be bearish for the commodity while another reduction could spur gains.

Apart from that, major swings in overall market sentiment could push commodity prices around. Stronger appetite for risk in anticipation of more stimulus from central banks and governments could be bullish for crude oil.