WTI crude oil found support at the former trend line on its hourly time frame and might be setting its sights higher on the Fibonacci extension levels. Technical indicators are looking mixed, though.

The 100 SMA is below the 200 SMA to suggest that bearish pressure is present, but the gap between the indicators has narrowed enough to hint at a bullish crossover soon. Also, crude oil is trading above both moving averages, so these could hold as dynamic support.

Price could aim for the 38.2% extension at $73.39 per barrel or the 50% level at $74.32 per barrel. Stronger bullish momentum could take crude oil up to the 61.8% extension at $75.26 per barrel near the swing high or the 76.4% level at $76.42 per barrel. The full extension is at $78.29 per barrel.

However, stochastic is already moving down from the overbought zone to indicate that selling pressure is returning, possibly taking crude oil for another leg lower. RSI also seems to be heading south, although the oscillator has some room to climb still.

Crude oil could be pushed around by EIA inventory data, which is slated to show a smaller build of 1.2 million barrels after the previous surprise gain of 4.5 million barrels. An even lower increase or a surprise draw could mean more upside for the commodity.

Earlier today, the API reported that private crude oil inventories were down 1.71 million barrels, likely due to a boost in purchases leading up to Memorial Day holidays. Analysts had expected an increase of 1.5 million barrels for the week.

Risk-taking and a weak dollar might also add to the commodity’s gains, although Fed tightening hopes for this month are currently propping up the Greenback after the May NFP report once again beat estimates. Still, the downbeat ISM services PMI released early this week are keeping a lid on dollar gains.