WTI crude oil is on an uptrend but is in the middle of a correction on its 4-hour time frame. Price is pulling back to the 38.2% Fib that appears to be holding as support.

If this is enough to keep losses in check, crude oil could recover to the swing high at $68.05 per barrel and beyond. A larger pullback could reach the 50% level at $63.66 per barrel or the 61.8% Fib at $62.62 per barrel.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that support levels are more likely to hold than to break. The 100 SMA is near the rising trend line to add to its strength as support around the $62 per barrel mark.

Stochastic has some room to head south, so bearish pressure could stay in play and spur a larger correction. Similarly RSI just moved down from the overbought zone to suggest that sellers are just getting started. Price could resume the climb once the oscillators pull up from the oversold area.

Crude oil drew a strong boost from the OPEC+ decision to extend their output deal, easing global oversupply concerns for the coming months. This outweighed the surprise build reported by the American Petroleum Institute and Energy Information Administration last week.

Another build in inventories, however, could mean more downside for the commodity. After all, this would reflect weak demand and a possibility of an oversupply if business and consumer conditions don’t improve anytime soon.

Then again, traders could take cues from the prospect of the Biden stimulus plan being approved. This would mean another round of stimulus checks and business support that could keep demand for fuel and energy intact at least for a few months while traders await results from vaccination efforts.