WTI crude oil is bouncing off support at the rising trend line and 50% Fibonacci retracement level, possibly setting its sights on the swing high next.

Stronger bullish momentum might even take crude oil to new highs closer to the $80 per barrel mark. A larger correction could still test the 61.8% Fib close to the 100 SMA dynamic inflection point at $72.24 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 is more likely to hold than to break. The gap between the indicators is widening to reflect strengthening bullish momentum.

Stochastic is on the move up to show that buyers are in control of price action. The oscillator has plenty of room to climb before reaching the overbought zone to signal exhaustion, so buyers could stay in the game for much longer.

However, RSI is heading down to show that sellers might still be able to push for another dip or a deeper pullback. A break below the moving averages would confirm that a reversal from the uptrend is taking place.

The latest EIA and API inventory reports reflected surprise gains in stockpiles, suggesting that demand took a larger hit than expected. Analysts had been anticipating reductions due to weaker supply conditions owing to weather disturbances leading to shut-ins among production facilities.

Another tropical storm is expected to keep most of production offline in the coming days, so traders are keeping crude oil afloat in anticipation of a supply crunch in the next inventory reports.

Besides, purchases of fuel and commodities appear to be supported as more businesses resume operations while economies return to normal pre-pandemic conditions. Still, forecasts of tapering and tightening among some central banks could weigh on business activity.