WTI crude oil is pulling back from its rally but remains within the rising channel on its 4-hour time frame. This has been holding since the start of the month and might still be enough to keep losses in check.

The channel bottom lines up with the 100 SMA dynamic support that adds to its strength as a floor around $82 per barrel. This moving average 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.

Stochastic is heading down but already dipping into the oversold region to suggest that sellers are starting to feel exhausted. Turning back up would mean that buyers are taking over.

RSI is also heading lower, so price could follow suit while bearish pressure is in play. A break below the channel bottom might be followed by a reversal from the uptrend while a bounce could see a move back up to the top or the middle around $85 per barrel.

Crude oil sold off after the EIA reported a larger than expected build of 4.3 million barrels versus the estimated gain of 2 million barrels. Note that this follows a surprise draw of 0.4 million barrels the other week, so demand likely turned lower or supply picked up recently.

Still, the commodity might be able to regain its footing if the energy crunch persists, especially with weather disturbances crippling production in some areas. Demand could keep advancing with more businesses resuming normal operations, likely lifting purchases of fuel and energy commodities in the coming months.

Note that more economies such as Australia are emerging from months of lockdowns, so the pickup in business activity could spur a surge in commodity demand and prices.