WTI crude oil is testing a major resistance level visible on its 4-hour time frame and might be due for a dip to nearby support levels. Technical indicators are giving mixed signals on whether or not the ceiling might break.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that resistance is more likely to break than to hold. If that happens, crude oil could climb by the same height as the rectangle consolidation pattern. Price is also moving above both indicators, so these could hold as dynamic support on dips.

However, the gap between the moving averages is narrowing to suggest weakening bullish pressure. Stochastic is also turning lower to signal that buyers are taking a break and letting sellers take over. RSI also appears to be on the move down to reflect bearish momentum. Both oscillators have plenty of room to move south before reflecting exhaustion among sellers.

The closest support is located around the $64 per barrel mark, which lines up with the 200 SMA. A larger dip could test the lows at $62 per barrel.

WTI crude oil barely reacted to slightly better than expected inventory data from the EIA, which revealed a draw of 1.7 million barrels in stockpiles versus the estimated reduction of 1 million barrels and the earlier increase of 1 million barrels.

This reflects a pickup in demand, which likely stemmed from the reopening of more cities and businesses. However, any return in risk aversion could weigh on crude oil prices, as weaker investor optimism could come in play.

The upcoming US core PCE price index release might impact overall market sentiment, as a strong inflation read could signal that the Fed might start tapering then tightening policy soon.