WTI crude oil appears to be finding support at the bottom of its rising channel, and applying the Fib extension tool shows the next upside targets. The 78.6% extension lines up with the top of the channel at $74 per barrel and might be enough to keep gains in check.

Stronger bullish momentum could take crude oil up to the full extension closer to $76 per barrel. The 100 SMA is 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 rally is more likely to resume than to reverse.

RSI is indicating oversold conditions or that sellers are already exhausted and may let buyers take over. Similarly, stochastic has fallen to the oversold area to show that bearish pressure is fading. Turning back up could draw bulls back in and allow the rally to resume.

A weak bounce could find resistance at the 38.2% extension or $69.38 per barrel or the middle of the channel near the 50% extension. The 61.8% extension is close to the swing high at $72 per barrel.

Crude oil gains have been dampened by fears of seeing adjustments to the OPEC output deal. This has drawn some support from Russia leading up to the official meeting in Vienna next month. The cartel has hinted that it could relax compliance, possibly adding to downside pressure on prices.

Traders could still glean some clues from the API and EIA reports due this week as a reduction in stockpiles could ease oversupply concerns. A huge surprise build, on the other hand, could further contribute to crude oil selling.

Apart from that, overall market sentiment has also been dragging commodities lower these days on account of political uncertainty in Italy and Spain. This has revived fears of an EU breakup and potentially slower growth in the region,