WTI crude oil is trading around record highs but might be stalling at this key area of interest visible on the monthly time frame. Price is testing the $75-80 per barrel level, which previously served as support then resistance.

If the ceiling still holds, crude oil could retreat to nearby support zones around $50-60 per barrel. A break higher, on the other hand, could pave the way for a move to the $100 per barrel mark.

The 100 SMA is 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 also starting to break above the 200 SMA dynamic inflection point as an early indication of bullish pressure.

Stochastic is reflecting overbought conditions or exhaustion among buyers, so turning lower would mean that sellers are taking over. RSI has a bit more room to climb, so there may be some bullish energy left for more gains.

Crude oil analysts are already forecasting $100 per barrel levels soon, as production would likely be crippled by another tropical storm. Recall that Hurricane Ida left several facilities shut-in and needing repairs for days, leaving majority of production offline.

Meanwhile, demand is likely to keep picking up as more parts of the US resume normal economic activity. Vaccination efforts appear to be making success, allowing more businesses to reopen and consumers to increase spending.

The inventory reports from the American Petroleum Institute and Energy Information Administration would contain more insights on supply and demand conditions.

Recall that the earlier report showed a large draw in stockpiles, leading to rallies for the commodity price. Another large reduction this time could extend these gains and bring enough bullish momentum for a reversal from the previous slide.