WTI crude oil is retreating from its strong rally but seems to be in correction mode to longer-term support zones. The Fibonacci retracement tool shows where buyers might be waiting.

The 38.2% level is close by and lines up with the 100 SMA dynamic support around $68.66 per barrel. A larger pullback could dip to the 50% Fib near the rising trend line at $67.30 per barrel and 200 SMA. The line in the sand is at the 61.8% Fib close to the $66 per barrel mark.

Stochastic is still heading lower to reflect the presence of selling pressure, but the oscillator is nearing the oversold region to reflect exhaustion. Turning back up could mean that buyers are returning.

RSI also has a bit of room to head south before reflecting oversold conditions, so the correction could keep going for a bit longer. A break below the trend line support and 200 SMA, on the other hand, could mark the start of a reversal.

Crude oil is being weighed down by risk-off flows stemming from the Fed’s shift to a slightly more hawkish stance. The dot plot forecasts of interest rates suggested that the period of low borrowing costs could come to an end sooner than previously expected, possibly weighing on business and consumer activity.

Still, the EIA report revealed a larger draw in stockpiles of 7.4 million barrels than expected at 2.1 million barrels or the earlier 5.2 million barrel drop. This suggests that demand remains supported or that oversupply is not a looming concern.

Keep in mind that the OPEC+ also affirmed its commitment to the output deal, even as prices already stabilized above $60-70 per barrel. This could keep global glut concerns at bay for much longer while the reopening of more economies could keep demand supported.