WTI crude oil is trending higher on its short-term chart, with price testing the top of its ascending channel around $74 per barrel.

If this holds as resistance, the commodity price could still retreat to nearby support levels at the mid-channel area of interest around $72 per barrel or the channel support at $70-71 per barrel.

The 100 SMA appears to be crossing below the 200 SMA to signal that the path of least resistance is to the downside or that resistance is more likely to hold than to break. However, price is trading above both moving averages, so these could also hold as dynamic support on a dip.

Stochastic is also heading down to show that sellers are taking over while buyers take a break. RSI is also on the move down, so price could follow suit until oversold conditions are met.

The return in risk-taking is seen as the main catalyst for spurring the bounce in crude oil, as traders returned their focus to strong fundamentals versus the prospect of reduced stimulus in the near future.

Recall that the FOMC signaled plans to start tapering in November and possibly start hiking borrowing costs by mid-2022. The BOE also seemed hawkish in its latest policy decision, which prompted traders to speculate that global stimulus reduction could come in play sooner or later.

In turn, this would likely weigh on business and consumer activity, which then limits demand for fuel and energy commodities. Still, the EIA reported its seventh weekly consecutive draw in stockpiles, which suggests that purchases are going strong.

In addition, weather agencies project another incoming weather disturbance that might lead to another set of shut-ins among production facilities. Recall that Hurricane Ida left majority of facilities offline and needing repairs for days, which kept a lid on output then.