WTI crude oil is still trending higher, but price is in the middle of a major correction from its latest rally. Price is closing in on the 38.2% Fibonacci retracement level around $74 per barrel.

This happens to line up with the 100 SMA dynamic inflection point, which is above the 200 SMA to confirm that the climb is more likely to resume than to reverse. The gap between the indicators is widening to reflect strengthening bullish momentum.

Still, a larger pullback could reach the 50% Fib at $73 per barrel or the 61.8% Fib that lines up with the rising trend line connecting the lows since mid-September. If any of these hold as support, crude oil could recover to the swing high or higher.

Stochastic is heading down but already dipping into the oversold region to signal exhaustion among sellers. Turning back up would mean that buyers are taking over.

RSI is also heading lower but has some room to move south before reaching the oversold region, so sellers might have some energy for more declines.

Crude oil has been on a steady climb, as traders are anticipating another supply crunch from weather disturbances. At the same time, demand has been picking up as more economies resume normal activity.

However, a surprise build in stockpiles cut the rally short recently. The American Petroleum Institute announced a build in crude oil inventories of 4.127 million barrels for the week ending September 24, which ran contrary to expectations of a draw of 2.33 million barrels.

This could mean that the EIA report might also show a build in stockpiles. Analysts are expecting to see a reduction of 2.5 million barrels after the earlier drop of 3.5 million barrels. A build could mean more downside for the commodity price while a larger draw could allow the uptrend to resume.