WTI crude oil appears to have completed its pullback and is resuming the climb. Price bounced off the $57 per barrel level after forming a small double bottom formation.

Price is retesting the broken neckline around $58 per barrel, though, and holding as support could allow it to recover to the nearby resistance levels. The Fib extension tool shows that crude oil hit resistance at the 50% level around $59 per barrel.

The next extension level of 61.8% is at $59.41 per barrel and the 76.4% extension is at $60 per barrel. The full extension is at $61.03 per barrel.

However, the 100 SMA has crossed below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that selling pressure is returning and crude oil could be in for more losses.

Stochastic is also pointing down to signal that selling pressure is in play while RSI has more room to fall and take crude oil along with it. Then again, stochastic is nearing oversold levels to signal a pause n selling and a potential return in bullish momentum.

The OPEC agreed to extend its output deal until the end of 2018 but could be due for a review in June if the market overheats then. This means that there’s still a chance for the deal to be off the table if conditions warrant it at that time. OPEC is now discussing ‘soft targets’ of around 1.8 million barrels per day for Nigeria and 1 million barrels per day for Libya.

The focus now turns back to inventories this week as the American Petroleum Institute and the Energy Information Administration could report gains on the resumption of the Keystone Pipeline operations. Recall that a spill forced a temporary closure of the facility that brings around 590,000 barrels per day from Canada to the US.

Oil rig counts in the US ticked higher once more as drillers are resuming operations to take advantage of the price rallies.