WTI crude oil is starting to resume its climb as it bounced off the rising trend line on its 1-hour chart. This happens to line up with the 50% Fibonacci retracement level and $65 per barrel major psychological mark.

If support continues to hold, crude oil could recover to the swing high at $66.75 per barrel level or higher. A larger correction could last until the 61.8% Fib at $64.37 per barrel.

The 100 SMA is safely above the 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. The gap between the moving averages is wide enough to show that bullish momentum could be sustained.

Stochastic is starting to turn higher from the oversold region to signal that buyers are taking over while exhausted sellers take a break. RSI is also moving north, so crude oil price could follow suit until overbought conditions are met.

Crude oil got a boost from a larger than expected drop in stockpiles as reported by both the API and EIA. The latter printed a reduction of 8 million barrels versus the estimated 1.9 million barrel drop and the earlier increase of 0.1 million barrels.

This signals that demand remains supported now that more businesses have reopened, leading to stronger demand for fuel and energy commodities. This could also mean that oversupply is not a concern yet, even as the OPEC already agreed to increase output gradually.

Risk appetite could continue to support crude oil price gains, especially as the US is slated to report another strong increase in hiring. Analysts expect to see nearly 1 million in hiring gains for April, which could drive the jobless rate much lower. This would be indicative of stronger consumer activity down the line, which would then drive up business demand for crude oil.