WTI crude oil continues to climb but might be hitting a short-term roadblock at the top of its rising channel on the 4-hour chart. A break above this could confirm that a longer-term uptrend is happening.

The 100 SMA is still below the 200 SMA on this time frame, though, so the path of least resistance is to the downside. The 200 SMA also lines up with the channel top to add to its strength as a ceiling. If it does, crude oil could fall back to the channel bottom at $67.50 per barrel or the middle around $70 per barrel.

RSI has not yet reached the overbought zone but appears to be turning lower, suggesting that sellers are eager to return. Stochastic has been indicating overbought conditions for quite some time, so heading down could confirm a pickup in selling pressure.

Crude oil drew support from a surprise draw of 4.7 million barrels in the latest EIA report, so another larger reduction for this week’s release might mean more upside for the commodity.

A surprise build, on the other hand, would suggest that producers continue to ramp up output or that purchases are being weighed down. If that’s the case, crude oil might turn from current levels and dip back to nearby support zones.

Demand for fuel and energy commodities is expected to have taken a hit due to concerns about the Omicron variant, which also limits investors’ demand for riskier assets. However, indications that purchases remain supported might be enough to spur a longer-term uptrend for crude oil.

Volatility could be low in the days ahead, unless there are any major reports that could impact market sentiment. Traders are mostly off on holidays until the start of the new year, although profit-taking activity might still affect price action.