WTI crude oil  might be in for a reversal from its uptrend, as price is forming a double top on its hourly time frame. Price has yet to break below the neckline support at $82 per barrel before starting a downtrend.

The chart pattern spans around $82 to $84 per barrel, so the resulting drop could be of the same height, taking crude oil down to the $80 per barrel psychological mark.

However, the 100 SMA is above the 200 SMA to suggest that the path of least resistance is to the upside or that support is more likely to hold than to break.

Price is testing the 100 SMA dynamic support at the moment and might be in for a break lower. The 200 SMA dynamic support might still have some buyers at the $81 per barrel mark, especially since oscillators are reflecting exhaustion among sellers.

Stochastic is already dipping into the oversold region, so turning higher would confirm that buyers are taking over. RSI appears to be pulling up without reaching the oversold area, indicating that buyers are eager to return.

Crude oil is still drawing some support from weaker supply conditions, but it looks like the focus is shifting away from the energy crunch. Still, Europe and China are reporting shortages in fuel and energy commodities while weather disruptions keep production in check.

Risk appetite has been picking up, with more market watchers paying attention to improvements in business activity now that more economies are reopening.

The upcoming EIA inventory report is slated to show a smaller build of 2.1 million barrels versus the earlier increase of 6.1 million barrels, signaling a pickup in purchases or a drop in output.

An even smaller build might mean more upside for the commodity price while a large increase could set off the downtrend.