WTI crude oil is picking up steam on its uptrend, as price broke through the 38.2% Fib extension and is aiming for higher upside targets.

Price is now testing the 50% Fib past the mid-channel area of interest, so there could be more bullish momentum left. In that case, crude oil could keep climbing to the 61.8% Fib at $72.90 per barrel that lines up with the swing high.

Stronger bullish pressure could take crude oil up to the 76.4% level at $73.73 per barrel near the channel top. The full extension is near $75 per barrel.

The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the uptrend is likely to carry on. The 100 SMA also held as dynamic support on the recent dip to the channel bottom.

However, stochastic is already reflecting overbought conditions or exhaustion among buyers, so turning lower would mean a return in selling pressure. RSI has a bit more room to climb, so crude oil price could follow suit until overbought conditions are met.

WTI crude oil got a boost from a larger than expected draw in stockpiles of 3.5 million barrels versus the projected reduction of 3.3 million barrels. However, this is lower than the previous reduction of 6.4 million barrels, suggesting that demand may have taken a hit or that supply picked up.

Still, it’s worth noting that the commodity held on to its gains even with the Fed signaling their taper before the end of the year and marking the start of interest rate hikes sometime next year. Fed head Powell hinted that higher borrowing costs could be in play mid-2022, but market analysts predict that it could start in September next year.

Reducing stimulus would likely weigh on business and consumer activity, but crude oil bulls are likely counting on economic conditions normalizing as pandemic concerns fade.