WTI crude oil has pulled back from its recent swing high at $67.06 per barrel and is currently trading around $65.76, as the commodity retreats within its ascending channel after bulls failed to sustain gains near the upper boundary.

The ongoing correction appears to be drawing interest from buyers at the Fibonacci retracement levels, though sellers have yet to fully relinquish control.

The ascending channel has been intact since early January, with price respecting both the upper and lower boundaries on multiple occasions. The recent pullback from the channel top brings the Fibonacci retracement levels into focus as potential areas where buyers could re-engage.

The 38.2% Fib is located at $65.02, which is close to current price action and could be the first line of defense for bulls. A deeper correction could reach the 50% level at $64.39, followed by the 61.8% Fib at $63.76, which aligns closely with the mid-channel area and could be the line in the sand for a bullish pullback.

Should the correction extend further, the 100% Fib level at $61.72 coincides with the lower channel boundary and the 200 SMA dynamic support, representing a critical longer-term floor for the uptrend.

On the subject of moving averages, the 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside and that the climb is more likely to gain traction from here. Price recently broke back above both moving averages following the sharp bounce off the channel bottom, reinforcing the bullish structure.

Stochastic has turned sharply lower from the overbought zone, indicating that selling pressure is picking up and that the pullback could have more room to run before buyers step back in.

RSI is also heading south but has yet to reach oversold territory, leaving room for additional downside before momentum conditions become attractive enough to draw in fresh bulls.