WTI crude oil already busted through its descending trend line resistance on the monthly time frame to suggest that a long-term reversal is in the works.

However, technical indicators are still reflecting bearish pressure. The 100 SMA is below the 200 SMA to indicate that there’s a chance the downtrend could resume, although price is breaking above the 200 SMA dynamic inflection point.

Stochastic has reached the overbought zone to suggest that buyers are feeling exhausted and might let sellers take over. In that case, crude oil could retest the broken trend line resistance around $50-60 per barrel.

RSI has more room to climb before reaching the overbought zone to reflect exhaustion among buyers, so bullish pressure could stay in play for much longer.

WTI crude oil drew a boost from the lack of decision by the OPEC to adjust its output deal. There have been conflicting arguments from the UAE and Saudi Arabia, so the technical committee refrained from recommending an increase in production for now.

The upcoming API and EIA inventory reports would give insights on the demand side of the equation, as another large draw could confirm sustained purchases of fuel and energy commodities. The reopening of economies has led to a boost for crude oil demand, although worries about the Delta variant could keep purchases in check.

Also, the FOMC minutes might have a large impact on overall market sentiment, enough to influence crude oil price movements midweek. Any indication that more policymakers are turning hawkish could bring risk-off flows back in anticipation of lower stimulus and higher borrowing costs later on.

On the other hand, cautious remarks could lead investors to push back tapering expectations and keep risk appetite in play, which would be bullish for commodities like crude oil.