WTI crude oil could be in for a long-term climb as price is forming a double bottom on its weekly chart. Price has yet to break past the neckline around $80 per barrel before confirming the uptrend, though.

The 100 SMA is still below the 200 SMA to indicate that the path of least resistance is to the downside or that there’s a chance for the drop to resume. Price has climbed above both indicators, so these could hold as dynamic support from here.

Stochastic is already indicating overbought conditions to signal exhaustion, and turning lower could mean a return in bearish momentum. RSI also just reached the overbought area to suggest that buyers could use a break since the move has been overdone for a while.

Crude oil inventories saw a larger than expected build of 13.8 million barrels versus the expected increase of 3.0 million barrels. However, this was an improvement over the earlier increase of 21.6 million barrels, suggesting a pickup in demand or a reduction in supply.

The commodity shrugged off the downbeat read, as traders are still pricing in the impact of the extension of the OPEC+ deal by a few months, easing supply glut concerns until April. Risk-taking is also bullish for the commodity, especially after the House approved Biden’s stimulus plan.

This could provide much-needed support for businesses and consumers in the near-term, as well as lift asset prices while many invest their stimulus checks in financial markets. In turn, risk appetite and demand for fuel and commodities could get another strong boost.

The upcoming Baker-Hughes oil rig counts could still spur some volatility or perhaps a weekend gap, although the path of least resistance appears to be to the upside for crude oil.