WTI crude oil is trending higher on its 4-hour chart and looks ready for another dip to the rising channel support around $73 per barrel.

If this holds, the rally could resume to the mid-channel area of interest or to new highs at the top of the channel around $75-76 per barrel.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break. The gap between the indicators is widening to reflect strengthening bullish momentum, and the 100 SMA is near the channel bottom to add another layer of support.

Stochastic is heading down but dipping into the oversold region to signal exhaustion among sellers. Turning back up would mean that buyers are ready to return. RSI has more room to move south before reaching the oversold zone, so sellers could stay in the game for a bit longer.

WTI crude oil could take cues from the API and EIA inventory reports, as another large draw in stockpiles would mean upside for the commodity. Demand likely picked up in the past weeks, buoyed by economies and businesses reopening.

However, risk-off flows stemming from worries about the Delta variant could keep a lid on price gains. After all, this has been prompting another set of lockdown measures like in Australia, so demand for fuel and energy commodities could be subdued.

The upcoming US NFP release might also impact crude oil direction later in the week, as traders would like to get more clues on whether or not the Fed could start tapering or tightening soon. Weak data could keep risk-taking in play, which would be bullish for crude oil, as this might mean a longer period of low borrowing costs.