WTI crude oil has been climbing steadily inside an ascending channel since late August, with the commodity recently pushing up to test the channel top around $93.22 per barrel.

Price has stalled at this ceiling over the past few sessions, hinting that a pullback could be in store before buyers attempt another push higher. If resistance holds, WTI could retreat back toward the mid-channel area, where the Fibonacci retracement tool marks potential support levels.

The 38.2% Fib sits at $88.01, followed by the 50% level at $86.40, while a deeper correction could reach the 61.8% Fib at $84.79, close to where the channel’s rising trend line and the 100 SMA converge.

The 100 SMA remains above the 200 SMA, confirming that the path of least resistance is still to the upside, and price continues to hold above both moving averages, keeping them in play as dynamic support on any dips.

Stochastic is hovering in the overbought region, reflecting exhaustion among buyers, and a turn lower from here could mark a return in selling pressure. The oscillator has ample room to fall before reaching the oversold area, suggesting sellers could have the upper hand for a while if a pullback gets underway.

RSI is also perched near the overbought threshold with limited room left to climb, so price could soon follow the oscillator lower should momentum fade.

Fundamentally, traders continue to weigh shifting supply dynamics and geopolitical developments that have underpinned the recent climb, alongside inventory data that could sway near-term direction. For now, the broader uptrend remains intact as long as the channel bottom and lower Fib levels hold as support, but a break below the channel altogether would raise the risk of a deeper corrective move.

Geopolitical tensions remain supportive of crude oil prices, as the Hormuz standoff keeps supply worries present. However, the dollar faces a major test as the CPI release looms while Fed officials are in a blackout period.