WTI crude oil is trending higher as it moves inside an ascending channel on the 1-hour time frame. Price is currently testing the resistance and might be due for a pullback to support.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. Price is testing the 100 SMA dynamic support at the moment and might still need a deeper correction to the 200 SMA dynamic inflection point before resuming the climb.

The 200 SMA lines up with the 50% retracement level and a former resistance level that might hold as support. More buyers might be waiting here or at the 61.8% level that lines up with the bottom of the channel around $56 per barrel.

RSI seems to have climbed out of the oversold region to signal a return in bullish momentum. This could be enough to keep the nearby support levels in play and allow crude oil to retest or even break past the channel top around the $59 per barrel swing high. Stochastic is heading higher so crude oil price might follow suit while buyers are in control, but the oscillator also seems to be turning lower to suggest that sellers are putting up a fight.

The OPEC output deal seems to be doing a fine job of keeping crude oil losses in check as prices dipped but only marginally. Weaker economic figures from China, coupled with persistent geopolitical risks, might dampen global sentiment and business demand but it looks like the reduction in supply is taking effect.

US shale oil production is also projected to take hits as drillers are no longer as profitable as they used to be. This could be positive for WTI crude oil demand on the local front as well.