WTI crude oil recently bounced off the resistance on its new descending channel after the OPEC announced its decision. Profit-taking was largely blamed for the drop as the outcome simply came in line with market expectations.

The oil cartel decided to extend their output deal by nine months in order to keep price levels afloat and curb oversupply troubles. Their required production caps were unchanged instead of being adjusted lower in order to make the output deal more effective. Apart from that, Iran has refused to lower production levels as it is keen to make up for lost output while the conflicts were happening.

With that, WTI crude oil seems to be on track for another test of support at the longer-term channel bottom around $46 per barrel or the short-term channel support closer to $44 per barrel or the lows this year. A break below this support zone could mark the start of a long-term selloff for the commodity.

The 100 SMA is above the longer-term 200 SMA for now so the path of least resistance is to the upside. However, the gap between the moving averages is narrowing to suggest weaker buying momentum and a potential downward crossover, which would draw sellers in.

Stochastic is on the move south and is halfway through on its path to the oversold area, signaling that bears have enough energy on their side. Similarly, RSI is turning back down even without hitting overbought levels, indicating that sellers are eager to take crude oil prices back down as well.

Now that the OPEC meeting is over and done with, crude oil could resume trading on the usual supply and demand updates. Prior to the summit, US inventory levels have posted consecutive weekly declines so there’s not much pressure on that front. However, weak data from China and a downgrade by Moody’s has weighed on the global outlook and energy demand.

Another decline in US inventories could ease concerns about rising oil rig counts and production from the country. Of course the API report due earlier could already shape expectations at the start of the week and a huge pileup could mean more losses for the commodity.