WTI crude oil is still trending higher on its 4-hour time frame and already seems to be finding support at the mid-channel area of interest. If this keeps losses in check, price could resume the climb to the next upside targets marked by the Fib extension tool.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse. This faster-moving MA could also hold as dynamic support around the $59 per barrel mark in case the correction still keeps going. A larger pullback could find support at the bottom of the channel around $58 per barrel.
RSI is treading lower to signal that selling pressure is still in play. The oscillator has plenty of room to head south to signal the presence of bearish pressure, but it is also closing in on the oversold region to reflect exhaustion. Stochastic has already reached oversold territory to suggest that buyers might take over while sellers take a break.
A continuation of the climb could take crude oil to the swing high at the $61 per barrel mark or the 50% extension closer to the top of the channel. Sustained bullish momentum could take the commodity higher to the 61.8% extension at $62.10 per barrel or the 78.6% extension at $62.88 per barrel. The full extension is located at $63.88 per barrel.
Inventory figures from the API and EIA would likely determine where crude oil might be headed for the week as another large draw could lift prices again. Note that risk appetite also got a boost from the more dovish FOMC minutes and speech by Fed head Powell, as lower borrowing costs could be good for business outlook and energy demand.