WTI crude oil has been trending steadily higher within an ascending channel, but price has recently pulled back sharply after hitting a swing high near the $102.63 level.

The commodity is now testing a key confluence zone where the ascending trend line support and Fibonacci retracement levels overlap, suggesting that a bounce could be in the works if buyers step in to defend the area.

The Fibonacci retracement tool drawn from the most recent swing low to the swing high at $102.63 shows several levels where buyers could be waiting. The 38.2% Fib sits at $98.40, which is close to where price is currently hovering around $98.82.

A deeper pullback could reach the 50% level at $97.09, which aligns closely with the ascending trend line and a horizontal support zone. An even larger correction could test the 61.8% Fib at $95.78, which may act as a stronger floor before bulls make their next move.

The 100 SMA has crossed below the 200 SMA, suggesting that some bearish pressure has entered the picture. However, WTI crude oil remains above the longer-term ascending channel support line, so the broader uptrend could still be intact if the Fib levels hold.

Stochastic is pulling back from the overbought region and is now approaching the midpoint, suggesting that sellers have taken over in the short term. The oscillator still has room to slide before reaching oversold territory, meaning the pullback could extend a little further before buyers regain control.

RSI is trending lower but remains in neutral territory, giving price room to continue the correction without being overstretched. A stabilization around the 50 level on the RSI could be an early sign that bulls are preparing to return.

Crude oil could continue to take cues from geopolitical headlines, particularly pertaining to strikes on facilities or additional roadblocks to shipments that could influence global supply conditions. Easing tensions between the US and Iran could also translate to unwinding of long oil positions.