WTI crude oil could be in for a reversal from its uptrend, as price is breaking below the neckline of a complex double top pattern. The formation spans around $5 in height, so the resulting selloff could be of the same size.

The 100 SMA is still above the 200 SMA, though, so the path of least resistance is to the upside. In other words, there’s a strong chance the uptrend could resume.

However, price has broken below the 100 SMA dynamic inflection point as an early indication of selling pressure. The 200 SMA might still be enough to keep losses in check around $80 per barrel.

Stochastic is also indicating oversold conditions or exhaustion among sellers, so turning higher would mean that buyers are taking advantage. This could take crude oil back up to the highs near $85 per barrel.

RSI has also dipped into the oversold region, so price could follow suit once it pulls back up.

Crude oil took huge hits when the American Petroleum Institute data showed a 3.6 million barrel build in US crude oil stocks in the week ended Oct. 29. A similar figure from the Department of Energy could be met with another leg lower for the commodity price.

This would confirm that the energy crunch might no longer be a concern since supply is starting to keep up with the rise in demand. Recall that purchases of fuel and energy commodities are advancing as more economies are emerging from their lockdowns.

Meanwhile, supply is starting to get back on its feet after weeks of weather disturbances weighing on production all over the globe.

The OPEC remains under pressure to increase its production target of boosting output by 400K barrels per day, although the cartel already missed this goal based on the latest figures. The OPEC meeting is already ongoing this week.