WTI crude oil recently busted through its descending channel top, signaling that a reversal from the downtrend is underway. Price looks ready to retest the broken resistance to gather more bullish energy.

Applying the Fibonacci retracement tool shows that the 50% level is close to this area of interest around $61.15 per barrel. Price is already testing the 38.2% Fib level near the $65.50 per barrel minor psychological mark, but a deeper correction could still reach the 61.8% Fib at $64.77 per barrel.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support levels are more likely to hold than to break. These indicators line up with the 50% Fib level to add to its strength as a floor, but the gap between the indicators has narrowed to reflect weaker bullish pressure.

Stochastic is still heading down to show that bearish pressure is in play, but the oscillator is nearing the oversold region to signal exhaustion. Turning higher would mean that buyers are about to take over and take crude oil back up to the swing high at $66.62 per barrel or higher.

RSI has more room to move south before reaching the oversold region, so price could follow suit while sellers have the upper hand.

Crude oil took hits from the smaller than expected inventory draw as reported by the EIA. Stockpiles were down by 0.4 million barrels versus the estimated reduction of 2.1 million barrels and the earlier drop of 8 million barrels, suggesting that demand has taken a huge hit.

Then again, the cyberattack on a pipeline has resulted to gas shortages, possibly lifting crude oil prices in the near future as supply is crippled. Risk sentiment resulting from US inflation and consumer spending data this week might also impact commodity trends.