WTI crude oil is trending lower on its 1-hour chart after previously falling through support around $62.50 per barrel. Price seems to be completing its retest of the broken support, which has held as resistance.

If it continues to keep gains in check, crude oil could resume the slide to the downside targets marked by the Fib extension tool. The 38.2% level is at $59.62 per barrel then the 50% level is at $58.81 per barrel.

Sustained bearish pressure could send crude oil to the 61.8% extension close to the $58 per barrel major psychological mark or the 76.4% level at $57 per barrel. The full extension is at $55.35 per barrel.

The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is likely to gain traction. The gap between the moving averages is even widening to reflect strengthening selling pressure.

However, stochastic has already reached the oversold region to reflect exhaustion among sellers. Turning higher would mean that buyers are returning and that another pullback may be in order. The moving averages could still hold as dynamic resistance levels if this happens.

RSI has more room to head south, so price could follow suit as bearish pressure stays in play.

Crude oil price action could hinge on the outcome of the inventory reports from the American Petroleum Institute and Energy Information Administration. A large build in stockpiles would highlight weaker demand conditions, especially as business and consumer activity would likely take hits from new lockdown restrictions in some parts of the globe.

A reduction, on the other hand, could mean that demand remains supported and that agreements to curb production are starting to have a positive impact on prices. The previous EIA report revealed a 2.4 million barrel increase in stockpiles.