WTI crude oil is once again testing the rising trend line support visible on its 1-hour time frame. A bounce could take it back up to the next upside targets marked by the Fibonacci extension tool.

The 38.2% level is at $39.33 per barrel then the 50% extension is at $39.76 per barrel. The 61.8% level is close to the swing high at $40.19 per barrel. Stronger bullish momentum could take it up to the 78.6% level at $40.80 per barrel or the full extension at $41.58 per barrel.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The gap between the indicators is widening to reflect stronger bullish momentum and the 100 SMA could hold as dynamic support close to the rising trend line.

A break below this level, however, could set off a drop to the next inflection point at $36 per barrel or the 200 SMA dynamic support. However, RSI is already on the move up to confirm that bullish momentum is picking up. Stochastic is also heading higher but is closer to the overbought zone to signal potential exhaustion among buyers.

WTI crude oil traders likely booked profits off the earlier rallies from reports that the OPEC is considering extending its output deal and having Russia on board. The attention now turns to the upcoming inventory data from the API and EIA to see if demand is still supported.

A large increase in stockpiles could signal that purchases have been weak and that oversupply could still be a concern. On the other hand, a reduction could mean that demand is getting stronger now that more states and economies have reopened.