WTI crude oil recently busted through its descending trend line on the hourly time frame to signal that a reversal from the selloff is due. Price might need to retest the former resistance in order to gather more bullish energy.

The Fibonacci retracement tool shows additional levels where buyers might be waiting. The 38.2% level is at $68.75 per barrel, then the 50% Fib is at $67.88 per barrel near the broken trend line. A larger correction could reach the 61.8% Fib at $67.61 per barrel.

If any of these hold as support, crude oil could make its way back up to the swing high at $71.57 per barrel or higher.

However, the 100 SMA is still below the 200 SMA to suggest that the path of least resistance is to the downside or that there’s a chance the selloff might resume. Then again, the gap between the indicators is narrowing to reflect slowing bearish pressure and a potential bullish crossover.

WTI crude oil appears to be staying afloat on hopes of stronger demand from China, as the economy’s reopening is spurring consumption. Risk-off flows have mostly been in play for the past week since the focus has been on the banking sector crisis, but this commodity has managed to hold on to gains.

Also, the prospect of slower interest rate hikes from the Fed would likely keep business and consumer activity supported, even as Powell warned that tighter credit conditions are coming. Stronger demand for fuel and energy commodities in the near-term would likely sustain the uptrend on crude oil.

Still, any major swings in market sentiment over the weekend would likely impact commodities overall. News of another lender collapsing to a deposit run might revive financial sector contagion fears, which might translate to losses for riskier assets like crude oil.