WTI crude oil has formed higher lows and found resistance at the $66.50 per barrel level, creating an ascending triangle on its 4-hour chart.

Price is currently testing the resistance and could be due for a bounce or break soon. Technical indicators are giving mixed signals on where price might go next.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the top is more likely to break than to hold. If that happens, natural gas could climb by the same height as the chart formation, which is around $8-9.

The 100 SMA also lines up with the triangle bottom to add to its strength as a floor, and the gap between the indicators is wide enough, so a bearish crossover is not likely to happen anytime soon.

Stochastic has just reached the overbought zone to signal exhaustion among buyers, and turning lower could mean that sellers are taking over. In that case, crude oil could dip back to support at $64 per barrel.

RSI is heading higher to show that bulls still have the upper hand, but the oscillator is nearing the overbought zone to reflect exhaustion as well.

Crude oil has managed to shrug off risk aversion stemming from the surge of COVID-19 cases in India, as traders are turning to this week’s catalysts for cues.

A pickup in fuel purchases among economies that have reopened likely led to a draw in global stockpiles, and the upcoming API and EIA reports should contain more insights on supply and demand conditions.

Also the recent cyberattack on the Colonial pipeline likely lifted purchases of commodities, as gasoline hoarding and shortages were reported in several US states. Risk-on flows stemming from upside surprises in some economic reports have also been observed.