WTI crude oil recently fell through its ascending channel support to signal that a reversal from the uptrend is taking place. Price might need to pull back to the broken support to gather more selling energy.

Applying the Fibonacci retracement tool shows that the 38.2% level lines up with the area of interest around $61.15 per barrel. A larger correction could last until the 61.8% Fib at $62.20 per barrel, which lines up with the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that there’s still a chance for the uptrend to resume. However, the gap between the indicators appears to be narrowing to reflect slowing bullish momentum and a potential bearish crossover.

Stochastic is already indicating oversold conditions or exhaustion among sellers, so turning higher could mean that buyers are returning. RSI is also in the oversold region to show that sellers could use a break and let buyers take over.

WTI crude oil might be awaiting the outcome of the OPEC-JMMC meetings to gauge whether or not the selloff could gain traction. Stronger commitment to the output deal could allow for a strong bounce for the commodity price as it would ease supply glut concerns.

The upcoming inventory figures from the American Petroleum Institute and Energy Information Administration could also impact crude oil price action midweek, as a draw in stockpiles could assure investors that demand remains supported.

Strong economic data, particularly when it comes to the jobs figures due later in the week, could also impact market sentiment and commodity price action. In particular, a higher than expected NFP reading might mean more gains for the commodity since it would signal that a recovery is underway.