WTI crude oil is in correction mode as price is inching close to the rising trend line support on the 4-hour chart. The 50% level appears to be holding so far, but a larger correction to the 61.8% Fib might follow.

This is near the 100 SMA dynamic support, which is above the 200 SMA to indicate that the path of least resistance is to the upside. An even bigger pullback could reach the rising trend line and area of interest around the $61 per barrel mark.

Stochastic is heading down but already dipping into the oversold region, which suggests exhaustion among sellers and a potential takeover by buyers. Once the oscillator turns higher from the oversold area, price could recover to the swing high at $68 per barrel or higher.

RSI has some room to head south, so selling pressure could stay in play for a bit longer and spur a deeper correction for crude oil before buyers return.

WTI crude oil could see some volatility during the release of inventory data from the EIA, which is expected to print a smaller build of 3.0 million barrels versus the earlier increase of 21.6 million barrels. This would suggest a pickup in demand or slower supply, which might give the commodity more upside momentum following the OPEC+ decision to extend its output deal by a few months.

A larger than expected increase, however, could mean more downside for the commodity and perhaps a break below the trend line support, followed by a reversal from the uptrend.

Risk-taking throughout the week might still keep the commodity afloat, though, especially as traders keep close tabs on the vote for Biden’s stimulus plan. The progress on vaccination programs in developed nations could also impact market appetite for risk and higher-yielding assets like commodities.