WTI crude oil staged a sharp parabolic rally from the $63.80 area all the way up to the $119.94 swing high, but the commodity has since undergone a steep correction as sellers moved in to take profits off the table.

Price is now pulling back through the Fibonacci retracement levels, and the question is whether any of these floors can draw enough buyers to sustain a recovery.

The 38.2% Fibonacci retracement level sits at $98.49, which has already been tested and broken to the downside. Price has since sliced through the 50% Fib at $91.87 as well, and is currently hovering near the 61.8% level at $85.25, which represents a more critical area of interest.

If this level manages to hold as support, WTI crude oil could attract fresh buying interest and stage a meaningful recovery back toward the $91.87 and $98.49 levels. A stronger bounce could eventually set its sights back on the $119.94 swing high.

The 100 SMA is still above the 200 SMA to confirm that the path of least resistance is to the upside or that the broader bullish trend remains intact. Both moving averages are sloping upward and sitting well below current price, suggesting that the longer-term momentum still favors the bulls should dip buyers step in around the 61.8% Fib.

Stochastic has tumbled sharply from the overbought region and is now approaching the oversold zone, reflecting the intensity of selling pressure during this correction. Once the oscillator reaches oversold levels and turns higher, this could signal that bearish momentum is exhausted and that a reversal is due.

RSI has similarly dropped from elevated territory and is nearing oversold conditions, suggesting that sellers may be running out of steam. A turn higher in both oscillators near current levels could confirm that the 61.8% Fib is holding as the line in the sand for this pullback.