WTI crude oil is bouncing off the area of interest visible on the 1-hour time frame, as price found buyers at the former resistance of $63 per barrel. Price could be aiming for the next upside targets marked by the Fibonacci extension tool from here.

The 38.2% level is around $66.50 per barrel then the 50% level lines up with the swing high at $67.54 per barrel. Stronger bullish momentum could take crude oil up to the 61.8% level at $68.59 per barrel or the 76.4% level closer to the $70 per barrel major psychological resistance. The full extension is at $72 per barrel.

Stochastic is already in the overbought zone to signal exhaustion among buyers, though, and turning lower could mean a return in selling pressure. RSI has a bit more room to climb before reaching the overbought area, so buying pressure could stay in play for a bit longer.

Crude oil underwent some downside on account of the larger than expected build of 13.8 million barrels in EIA inventories versus the projected increase of 3 million barrels. This was an improvement over the earlier increase of 21.6 million barrels.

The commodity could enjoy a bit more support as the OPEC+ recently decided to extend their output deal by a few more months, easing oversupply concerns for the time being. Risk-taking on account of government stimulus could also keep the commodity supported, as rising business and consumer activity could mean stronger demand for fuel and commodities.

At the same time, vaccination efforts in developed nations might also mean improved optimism in the markets, which could be bullish for higher-yielding assets like commodities.

The upcoming Baker-Hughes oil rig counts data over the weekend could bring in more volatility for the commodity, as a reduction could keep supply glut concerns in check.