WTI crude oil is trending lower on its 1-hour chart as it formed lower highs and lower lows inside a falling channel. Price bounced off support and is pulling up to nearby resistance levels.

The mid-channel area of interest appears to be holding, possibly sending crude oil back to support at $51.50 per barrel. A larger correction could last until the top of the channel at $53 per barrel. If any of the resistance levels are able to keep gains in check, price could resume the slide back to the channel bottom or lower.

The 100 SMA is below the 200 SMA to confirm that resistance levels are more likely to hold than to break. Price is also trading below both moving averages to indicate that these are likely to hold as dynamic resistance.

Stochastic is turning lower without even reaching the overbought zone, suggesting that sellers are eager to return. RSI has some room to climb, though, so there could be some bullish pressure left for a larger pullback.

Crude oil remains on weak footing as another wave of COVID-19 cases are causing concerns among businesses. After all, another set of lockdown measures are likely to weigh on consumer activity, along with demand for fuel and energy.

In turn, this would put downside pressure on crude oil prices and prompt traders to seek safe-havens instead. Vaccine rollouts appear to be hitting snags all over the world while the rising number of cases is outpacing the vaccination numbers.

The upcoming inventory report should add to crude oil volatility and direction, as a draw in stockpiles would confirm weakening business demand and sentiment. A reduction, on the other hand, could suggest that supply curbs are working and adjusting to the pace of purchases.

The FOMC decision would likely impact crude oil action as well since this top-tier market catalyst affects overall sentiment.