WTI crude oil broke above the top of its range on the 1-hour time frame to signal that bulls have won the round. This means that price could climb by the same height as the chart formation from here.

Stochastic and RSI are both indicating overbought conditions for quite some time, though, and it looks like the resistance at $68 per barrel is holding. The oscillators could turn lower from here, and price could follow suit as selling pressure returns.

This could pave the way for a retest of the broken range resistance around $64 per barrel. If it holds as support, crude oil could recover to the swing high or higher. A shallow pullback could find buyers at the 38.2% Fib at $64.67 per barrel while a larger correction could reach the 61.8% Fib near the moving averages.

On the subject of moving averages, the 100 SMA appears to be attempting a bullish crossover from the 200 SMA to confirm a return in bullish pressure. Price is trading above both indicators, so these could hold as dynamic support on pullbacks.

Note that the rectangle pattern spans around $3.50 in height, so the resulting climb could be of the same size.

Both the API and EIA reported surprise gains in crude oil stockpiles for the other week, but the commodity managed to draw support from the OPEC+ decision to extend their output deal to April this year. This could further ease supply glut concerns in the global market, which would keep crude oil prices supported.

At the same time, risk-taking on account of successful vaccination efforts and the prospect of more government stimulus could keep propping higher-yielding assets like commodities higher. This could bring about an earlier return to normal business conditions, which would boost demand for fuel and energy.