WTI crude oil is trending higher on its 4-hour time frame as its higher lows can be connected by a rising trend line. Price looks prime for a test of this support area soon, and the Fibonacci retracement tool shows where buyers are hoping to join in.

The 38.2% level is at $50.68 per barrel then the 50% level is at the $50 per barrel major psychological support. The 61.8% Fib is closest to the trend line at $49.35 per barrel. If any of these Fibs hold as support, crude oil could recover to the swing high at $52.82 per barrel or higher.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse. The gap between the indicators is narrowing, though, so bullish momentum is slowing. Still, the 100 SMA lines up with the trend line support to add to its strength as a floor.

Stochastic is just turning lower after staying in the overbought zone for a while, suggesting that buyers have been exhausted and are ready to let sellers take over. RSI is also heading down to suggest that selling pressure is about to pick up. The uptrend is likely to resume when both oscillators hit the oversold region and turn higher.

Crude oil has been advancing as the Department of Energy recently reported a large draw in stockpiles, suggesting that demand is picking up. This is also supported by the vaccine rollout and stimulus efforts all over the globe, possibly allowing business conditions to return to normal much sooner.

The upcoming inventory report should indicate whether or not this rebound is taking hold. A surprise draw might mean that demand remains shaky while another large reduction would confirm that business demand is accelerating.