WTI crude oil appears to be resuming its climb as it nears the swing high at $52.80 per barrel. A break above this could signal that a steeper climb is underway.

If the swing high continues to keep gains in check, crude oil could retreat to the nearby support levels marked by the Fibonacci retracement tool. The 61.8% level, in particular, coincides with an area of interest or former resistance that might hold as support around $49.35 per barrel.

The 50% level is right on the $50 per barrel major psychological mark, which is a key support zone. This is also near the 200 SMA dynamic inflection point, which is below the 100 SMA to confirm that the path of least resistance is to the upside. The gap between the indicators is also widening to reflect strengthening bullish momentum.

Stochastic has a bit of room to climb before making it to the overbought zone, but the oscillator might soon indicate exhaustion among buyers. Turning lower could confirm that sellers are taking over and that the correction could still happen. RSI has more room to move north, so bullish pressure could stay on for a bit longer.

WTI crude oil is enjoying upside momentum as traders appear to be pricing in another reduction in stockpiles for the Department of Energy’s weekly report. Recall that the commodity fell by 8 million barrels in inventory for the previous reporting week, reflecting strong demand.

Risk appetite stemming from stimulus and the vaccine rollout also appears to be propping up commodities and other higher-yielding assets up. A return in risk aversion, however, could bring in profit-taking activity and spur a larger correction for crude oil.

The API report should provide a pretty good preview of how the EIA figures might turn out, with a draw in stockpiles likely spurring more price gains for crude oil.