WTI crude oil is in consolidation as price formed lower highs and found support at $57.50 per barrel, creating a descending triangle on its 1-hour chart.

Price just bounced off the bottom of the triangle and is aiming for the resistance. Technical indicators appear to be hinting that the resistance would hold.

For one, the 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside or that sellers could take crude oil back to the bottom of the triangle. The 100 SMA also coincides with the triangle top near the $60 per barrel mark to add to its strength as a ceiling.

Stochastic is heading up to show that there is some bullish momentum left, but the oscillator is also closing in on the overbought zone to reflect exhaustion. Turning lower would mean that sellers are back in control.

RSI, on the other hand, has more room to climb before reflecting overbought conditions or exhaustion among buyers. This means that bulls could still have a chance at breaking past the triangle top, possibly leading to a climb that’s the same height as the chart pattern.

Crude oil could continue to enjoy some upside as the cargo ship blockage in the Suez Canal could delay shipments of fuel and energy for weeks. This could mean shortages and increased demand for current supplies, which might put upside pressure on prices.

Risk appetite also seems to be in play as traders are focused on vaccination efforts, easy monetary policy, and government stimulus. All these could mean support for business and consumer activity in the near-term, which could then spur demand for higher-yielding assets like commodities.

Note, however, that the latest round of crude oil inventories data from the EIA revealed a smaller than expected draw in stockpiles, reflecting feeble demand.