WTI crude oil is trending higher on its 1-hour chart as price formed higher highs and higher lows inside a rising channel. Price is pulling up to the mid-channel area of interest which appears to be keeping gains in check.

The 100 SMA is still above the 200 SMA, though, so the path of least resistance is to the upside or the climb is likely to resume. In that case, crude oil could still bounce to the channel top around $64.50 per barrel or higher. Price is finding resistance at the 100 SMA dynamic inflection point for now.

Stochastic looks ready to turn lower without reaching the overbought zone, suggesting that selling pressure could return soon. This could lead to another test of the channel bottom at $61.50 per barrel near the 200 SMA dynamic support.

RSI is on the move up but appears to be switching gears halfway through the climb, also suggesting a potential takeover by sellers.

WTI crude oil is under some downside pressure as traders await the next round of inventory data from the American Petroleum Institute and Energy Information Administration. The previous figures showed surprise increases in stockpiles, which reflect weaker demand and a potential oversupply.

Still, developments on the vaccine rollout front and the prospect of more government and central bank stimulus could keep traders hopeful of an earlier return to normal business conditions. If that’s the case, demand for fuel and energy could pick up on the increase in consumer and business activity, also lifting investors’ appetite for riskier assets like commodities.

On the other hand, a return in risk-off flows could lead to more dips in crude oil as it could potentially mean more months of trade and travel restrictions.