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WTI crude oil is still inside its uptrend channel on the daily time frame and is forming reversal candlesticks at the mid-channel area of interest. If support holds, price could bounce up to the top of the channel or the Fibonacci extension levels.
The 100 SMA is safely above the longer-term 200 SMA on this time frame to confirm that the path of least resistance is to the upside. This suggests that the uptrend is more likely to resume than to reverse. A dip to the channel bottom could also find support at the 100 SMA dynamic inflection point right there.
Stochastic is still heading south to signal that there’s still some selling pressure left, possibly enough to take WTI crude oil to the very bottom of the channel. RSI also has room before hitting oversold levels, which means that sellers still have the upper hand for now.
Crude oil recently took a hit when Saudi Arabia announced that it is ready to offer the additional oil output to new buyers. Recall that the OPEC agreed to collectively raise production limits part of their output deal in order to take supply disruptions from Iran and Venezuela into account.
Also, according to Russian energy minister Novak, the oil cartel has all tools at its disposal to stabilize crude oil prices. However, US President Trump keeps urging the OPEC to do more in order to keep a lid on the rallies.
Meanwhile, trade war troubles could also influence crude oil direction to some extent as it is a commodity after all. Besides, business uncertainty could dampen investment activity, which might then weaken demand for energy products. Easing trade tensions, on the other hand, could allow crude oil to bounce.