WTI crude oil has formed lower highs and higher lows to create a symmetrical triangle on its 1-hour chart. A break in either direction could set off a climb or rally that’s at least the same height as the chart formation.

In particular, a move below the $64 per barrel mark could lead to a drop that’s around $5 in height until $59 per barrel. A move past the $66 per barrel resistance could set off a climb that’s the same size.

Technical indicators are looking mixed in terms of hinting at the direction the breakout could go. The 100 SMA is above the 200 SMA to show that the path of least resistance is to the upside or that a bullish move is likely, but the gap between the indicators has narrowed to reflect weakening bullish pressure.

Stochastic is already in the overbought zone to signal exhaustion among buyers and a possible return in selling pressure. The oscillator has plenty of room to go before reaching the oversold area. RSI, on the other hand, appears to be inching higher but is also hovering around middle ground to reflect consolidation.

The EIA is due to report the latest inventory numbers for crude oil, and analysts are expecting a build of 2.8 million barrels. This would be lower compared to the earlier increase of 13.8 million barrels, suggesting a pickup in demand or a drop in supply.

A lower than expected build might be bullish for the commodity while a surprise draw could be enough to sustain a strong rally. A large increase in stockpiles, on the other hand, could spur a break lower for crude oil.

The upcoming FOMC decision might also serve as a strong catalyst for crude oil price action since it would likely impact overall market sentiment.