WTI crude oil broke below its triangle consolidation pattern to signal that sellers have won out, and that a drop of the same height as the chart pattern would follow.

The triangle spans around $62 to $68 per barrel, so the resulting slide could last by around $6 and take crude oil down to $56 per barrel. The 100 SMA is crossing below the 200 SMA to confirm that the path of least resistance is to the downside or that selling pressure is likely to pick up.

Stochastic is also turning lower without even reaching the overbought zone to signal that sellers are eager to return while buyers take a break. RSI is also turning lower but is still on middle ground to reflect consolidation. Both oscillators have plenty of room to move south before reflecting exhaustion among sellers, so the drop could carry on for much longer.

Crude oil could be under stronger footing as the latest EIA report showed a smaller than expected build of 2.4 million barrels in stockpiles versus the projected increase of 2.8 million barrels and the earlier build of 13.8 million barrels. This suggests that demand might have been slightly stronger or that supply has turned lower in the past week.

However, risk aversion could keep a lid on crude oil prices as market watchers are getting less optimistic about vaccination efforts globally. Still, keep in mind that the OPEC+ decision to extend their output deal for a few more months might mean more upside for the commodity.

Looking ahead, the Baker-Hughes oil rig counts might bring the next dose of volatility for crude oil. An increase in rigs could mean a rise in supply later on, which could weigh on crude oil prices in the near-term.