WTI crude oil continues to tread higher, as prices breached the $80 per barrel major psychological resistance. The top of the channel seems to be keeping gains in check, though, so a pullback might follow.

Applying the Fibonacci retracement tool shows where more buyers might be hoping to catch the rally. The 38.2% level lines up with the mid-channel area of interest while the 61.8% Fib is closer to the channel bottom at $75 per barrel.

The 100 SMA is above the 200 SMA to confirm that the uptrend is likely to carry on. The gap between the indicators is widening to reflect strengthening bullish momentum as well.

However, stochastic is heading south to show that sellers are in control of price action while buyers take a break. RSI is also heading lower, so price could follow suit while bearish pressure is present. Buyers would likely return once both oscillators turn back up.

Crude oil remains strongly supported as the energy crunch drags on. More economies are reporting higher gas prices and shortages, likely keeping prices afloat in the near-term.

Also recall that the OPEC refrained from adjusting its production agreement to increase output by 400K barrels per day until the end of the year. There has been strong pressure to increase production by a larger amount in order to keep price gains in check.

As it is, WTI crude oil is near its seven year highs and might be poised for more gains since the crunch shows no signs of easing.

The upcoming inventory reports from the API and EIA might provide near-term volatility for a pullback or a continuation of the rally, depending on the outcome. Another large draw could be enough to spur fresh highs for the commodity later this week while a build could trigger a much-needed pullback.