WTI crude oil staged a sharp rally earlier this month before pulling back from its recent highs, and the commodity is now eyeing a potential resumption of the climb toward the Fibonacci extension levels overhead.

Price surged from around the $77.74 swing low to a peak just above the $112.00 area before sellers stepped in to trigger a correction. The pullback has brought price closer to the 38.2% Fibonacci retracement level at $98.96, which could attract buyers looking to join the uptrend at a discount.

If this level holds as a floor, crude oil could make its way back up toward the 61.8% extension at $112.07, then potentially the 76.4% extension at $120.18. A stronger bullish push could eventually target the full extension near $133.29 per barrel.

A larger pullback, however, could reach the 50% Fibonacci level at $105.52 before buyers regain control. This area also aligns with a prior consolidation zone, adding to its significance as a potential support region.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction from here. Both moving averages are sloping higher well below current price levels, suggesting that the broader bullish trend remains intact and that any dips could be seen as buying opportunities.

Stochastic has pulled back sharply from the overbought region and is now approaching oversold territory, reflecting the recent correction in price. The oscillator could be nearing a reversal point, and a hook back up from these levels would signal a return in buying pressure.

RSI has also retreated and is hovering near the lower end of its range, suggesting that selling momentum may be fading. A turn higher from current levels could give bulls the green light to push crude oil back toward the extension targets.

Geopolitical headlines on the US-Iran war, as well as G7 leaders remarks on releasing oil from strategic reserves, could continue to drive oil volatility.