WTI crude oil could be in for a reversal from its downtrend, as price is forming an inverted head and shoulders pattern on its 1-hour chart.

A break above the neckline could set off a climb that’s the same height as the chart pattern, which spans around $62.50 per barrel to $70 per barrel.

The 100 SMA is below the 200 SMA, though, so the path of least resistance might be to the downside. In other words, resistance is more likely to hold than to break. Price is trading above both indicators, though, so these could hold as dynamic support levels.

Stochastic is on the move up to show that buyers are in control for now, but the oscillator is approaching the overbought zone to signal exhaustion. Turning back down could mean that sellers are taking over.

RSI has more room to climb before reaching the overbought area, so buyers could stay in control for a bit longer, possibly allowing the reversal to gain traction.

Crude oil is drawing support from expectations of lower output due to the weather disruptions and production facility shut-ins. About 80% of production remained offline until Tuesday, likely leading to a draw in stockpiles in the coming weeks.

The upcoming inventory report from the EIA is slated to show a reduction of 5.9 million barrels versus the earlier 7.9 million barrel draw. A larger reduction would confirm that demand has been stronger, likely leading to a break higher for the commodity price.

On the other hand, a surprise build might signal that purchases have taken a huge hit as well. API data showed that for the week ended Sept. 3 crude stocks dropped by 2.9 million barrels. This was smaller than the projected reduction for the week.

The commodity might also draw support from protesters in Libya blocked oil exports at Es Sider and Ras Lanuf, as this weighs on output.