WTI crude oil is resuming its climb after a quick retest of the broken resistance around $68.22 per barrel. Price could head to the bullish targets marked by the Fibonacci extension tool.

The 38.2% level is at $69.56 per barrel then the 50% level is at $70 per barrel. The 61.8% extension lines up with the swing high at $70.39 per barrel. Stronger bullish momentum could take crude oil to the 76.4% level at $70.91 per barrel or the full extension at $71.75 per barrel.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb is likely to resume. Crude oil is also finding support at the dynamic inflection points at the moving averages. However, the gap between the indicators is narrowing to reflect weaker bullish momentum.

Stochastic is still heading lower to show that bearish momentum is present, although the indicator appears to be turning back up.

Crude oil took hits when the US reported weaker than expected jobs growth in the past month, indicating that the economy is not recovering from the pandemic as strongly as anticipated.

Still, this could mean that the Fed would keep stimulus in place for much longer, which would support business and consumer activity. In turn, this could translate to higher demand for fuel and energy commodities.

Global supply remains elevated, though, as the OPEC is sticking to its production deal of increasing output by 400K barrels per day until the end of the year. Note that some nations have restrictions in place in order to prevent the Delta variant from spreading, which could mean a dent on economic activity.

Looking ahead, the inventory reports from the API and EIA would likely set the tone for crude oil movements midweek. Another large draw in stockpiles could assure traders that demand remains supported.