WTI crude oil continues to trend higher, as it broke past the mid-channel area of interest on its rising channel and is setting its sights on the top.

Technical indicators are giving mixed signals on whether or not the climb could continue. The 100 SMA is above the 200 SMA to suggest that the uptrend is more likely to resume than to reverse, and price is trading above both indicators.

However, stochastic is already in the overbought region to reflect exhaustion among buyers. Turning lower would mean that sellers are returning and could spur a dip to nearby support levels. RSI is also in the overbought zone to suggest that sellers might take the upper hand soon.

In that case, crude oil could retreat to the middle of the channel or until the bottom closer to $82 per barrel. The $80 per barrel major psychological mark might also keep losses in check since it’s near the 200 SMA dynamic support.

A continuation of the climb could take crude oil up to the $85 per barrel mark or higher.

Crude oil remains strongly supported, as the energy crunch deepens worldwide. Weather disruptions are keeping output in check while the OPEC also refrained from adjusting its production deal until the end of the year.

Meanwhile, demand continues to pick up since more economies are reopening and businesses are resuming normal operations. This would likely keep purchases of fuel and energy commodities elevated in the coming months, assuming the pandemic does not worsen again.

The upcoming inventory reports from the American Petroleum Institute and Energy Information Administration would likely push crude oil prices around, although a draw or small build might be enough to sustain the climb.

A large build, on the other hand, might suggest that output is starting to pick up and might mean some pullbacks for the rally.