WTI crude oil is trending higher on its 1-hour time frame, as it found support on a shallow rising trend line around $68 per barrel.

Price has formed lower highs, though, and technical indicators are giving mixed signals on whether or not the climb could carry on.

The 100 SMA just crossed below the 200 SMA to show that the path of least resistance is to the downside or that support is more likely to break than to hold. Price is also trading below both indicators as confirmation of selling pressure, so these could hold as dynamic resistance moving forward.

Stochastic is starting to pull up from the oversold region, suggesting that buyers could take over while sellers take a break. RSI is also heading higher without reaching the oversold area, which means that bulls are eager to return.

Crude oil is under a bit of downside pressure after seeing the EIA inventory report, as it printed a smaller than expected draw of 1.5 million barrels versus the estimated drop of 5.9 million barrels and the earlier reduction of 7.2 million barrels.

This signals that demand took a hit in the reporting week, likely as business and consumer activity slowed due to pandemic concerns. Traders are still pricing in a possible draw in the coming weeks since production was disrupted by Hurricane Ida, which led to shut ins among facilities along the Gulf Coast.

Risk sentiment might still push commodity prices around until the end of the week, especially as traders are counting on the Fed to keep stimulus in play for much longer. Then again, crude oil traders might be anticipating lower purchases as weak employment conditions could weigh on spending activity, along with demand for fuel and energy commodities.