WTI crude oil continues to trend lower, as price is hitting a ceiling at the top of its falling channel on the hourly time frame. If this continues to keep gains in check, crude oil could resume the slide to the channel support around $78 per barrel.

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. The 200 SMA is also near the channel top around $82 per barrel to add to its strength as resistance.

Stochastic seems to be heading up to show that bullish pressure is still present, but the oscillator is hovering close to the overbought zone to signal exhaustion. Turning back down could confirm that sellers are taking over and could take crude oil back down to support levels.

RSI is already on the move down, so price could follow suit as selling pressure picks up. The oscillator has plenty of room to slide before reaching the oversold region, so sellers could stay in play for much longer.

Crude oil could take cues from the inventory reports from the American Petroleum Institute and Energy Information Administration due tomorrow. Another build in stockpiles might suggest that demand is slowing or that supply is able to keep up with purchases.

The previous report revealed a build of 3.3 million barrels, so a smaller increase this time might mean some upside for the commodity since it would reflect even stronger demand.

Keep in mind that the OPEC was unable to meet its production deal of increasing output by 400K barrels per day based on the latest report. The cartel is maintaining this target until the end of the year, despite pressure to increase output.