WTI crude oil is trading sideways on its hourly time frame, finding support around $70 per barrel and resistance near $73 per barrel. Price is just bouncing off the ceiling and might dip back to the floor from here.

The 100 SMA is crossing below the 200 SMA to signal that the path of least resistance is to the downside or that resistance is more likely to hold than to break.

However, price is above both moving averages, so these could hold as dynamic support on pullbacks. These are around the mid-range area of interest at $71 per barrel.

RSI has some room to head lower before reflecting oversold conditions or exhaustion among sellers, so crude oil could follow suit while bearish pressure is in play. Stochastic also just made it down from the overbought zone to reflect a return in selling momentum.

A continuation of the price rallies, on the other hand, could spur a break past the range resistance and a climb that’s the same height as the chart formation.

Crude oil continues to stay supported for the time being, as the latest inventory reports confirmed that demand remains elevated even with the threat of Omicron. Recall that investors were wary of travel restrictions and potential lockdown measures that could dampen purchases of fuel and energy commodities in the near term.

However, most economies appear confident that they can weather setbacks brought about by the pandemic, with some central banks already starting on their tightening cycle. The BOE hiked interest rates to 0.25% to keep inflation in check while the Fed is eyeing three rate hikes next year, with Powell acknowledging that inflation could be more persistent.

With that, commodities could see a top soon, as traders focus on the impact of higher borrowing costs on growth and spending.