WTI crude oil continues on its uptrend as it recently bounced off the bottom of an ascending channel on the 4-hour chart. Price is trying to clear the mid-channel area of interest to confirm that bullish momentum could take it up to the very top.

The 100 SMA is above the longer-term 200 SMA to confirm that the path of least resistance is to the upside. In other words, the climb is more likely to gain traction than to reverse. However, the gap between the moving averages is somewhat narrowing to reflect weakening bullish momentum and signal a potential bearish crossover. Price is trading above both moving averages, so these could continue to hold as dynamic support, particularly the 200 SMA that lines up with the bottom of the channel.

RSI is heading lower to indicate that sellers might be getting the upper hand and could take price back to the bottom. Stochastic has also made it to the overbought region to reflect exhaustion among buyers and a possible return in selling pressure.

Crude oil is waiting on the inventory data from the American Petroleum Institute and the Energy Information Administration to determine its direction for the week. A large build could weigh on prices while a considerable reduction could further ease oversupply concerns.

It has been reported that US shale oil output is on the rise and could keep a lid on prices in the longer run. However, global supply is limited thanks to the OPEC output cuts and US sanctions on Venezuela.

Risk sentiment is another factor to watch in trading commodities as escalating trade tensions bring uncertainties for businesses and weigh on their demand. On the other hand, easing geopolitical risks could bring more gains for higher-yielding assets like crude oil.