WTI crude oil is stalling on its recent bounce as it tests the 38.2% Fib on the latest wave down. This is also close to the 200 SMA dynamic inflection point which adds to its strength as resistance.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. However, the gap between the moving averages is narrow so a bullish crossover might also be possible. Note that crude oil has moved past the 200 SMA dynamic resistance to signal a pickup in bullish momentum.

However, RSI is pointing down to suggest that sellers have the upper hand and could push price back down to the swing low at $64.50 per barrel. Stochastic is also heading lower to indicate that bearish pressure is in play. Once both oscillators reach oversold levels and turn back up, buying pressure could return.

Crude oil has drawn support from the improvement in overall risk appetite owing to the US-Mexico trade deal. Canada is already working on negotiations and indications that they are on board with the agreement could lead to more gains for the commodity.

However, crude oil also took hits on a surprise build in crude oil stockpiles as reported by the American Petroleum Institute. Private stockpiles reportedly rose 38K barrels for the reporting period versus the estimated draw of 500K barrels. This could mean that the data from the Energy Information Administration might also show similar results.

Then again it has been reported that Iran is seeing lower export levels, understandably due to the sanctions imposed by the US due to its nuclear program. However, traders seem to be paying closer attention to monthly OPEC data which could indicate if the cartel is keeping in line with its plan to stabilize prices.