WTI crude oil could be in for a reversal from its slide as price formed a double bottom pattern on the 1-hour chart. Price has yet to break above the neckline to confirm that an uptrend is underway.

Technical indicators are suggesting that the selloff might resume, though. The 100 SMA is below the 200 SMA to indicate that the path of least resistance is to the downside or that resistance is more likely to hold than to break. If that happens, crude oil could slide back to the lows near $58 per barrel.

A break higher, on the other hand, could set off a climb that’s the same height as the chart pattern. This double bottom spans around $58 per barrel to $61 per barrel or $3. Price is still hitting a ceiling at the 200 SMA dynamic inflection point as well.

Stochastic is heading south after spending some time in the overbought zone to indicate exhaustion among buyers and a return in bearish pressure. RSI is also heading south, so price could follow suit while selling momentum is in play. Both oscillators have plenty of room to slide before reaching the oversold area.

WTI crude oil drew some upside pressure from the blockage in the Suez Canal, as supply shortages could drive prices higher. However, the blockage has recently been cleared, possibly resulting in profit-taking on these recent rallies.

The upcoming inventory reports from the API and EIA could also lead to strong price moves this week, as traders will be off for the holidays in the latter half. The end of the month and quarter also coincides with profit-taking activity.

Later in the week, the NFP release might impact overall market sentiment, as another strong gain in hiring is eyed. Upbeat results could bring risk appetite back in and spur more gains for commodities.