WTI crude oil is trending higher on the short-term time frames but could be due to hit a ceiling around $53.50 per barrel soon. This is around the highs so far this year, so profit-taking off long positions could be seen at this level.

The 100 SMA is below the longer-term 200 SMA on the daily time frame so the path of least resistance is to the downside, which means that the top of the range is more likely to hold than to break. However, stochastic is pulling up from the oversold region to signal a pickup in bullish momentum.

RSI, on the other hand, appears to be heading lower to signal the presence of bearish pressure but is also stalling around the middle and turning back up. If the resistance holds, crude oil could be poised to dip back to support at $42 per barrel or at least halfway through at $48 per barrel.

There have been a lot of factors propping crude oil up these days, including expectations that the OPEC will extend its output deal beyond March 2018. If this is confirmed and if other oil-producing nations join the pledge, the commodity could enjoy strong gains past the resistance.

On the other hand, lack of support within the cartel could force crude oil to give back its recent gains. The range is likely to stay intact, though, as forecasts for stronger global demand for this year and the next might still be enough to keep prices afloat.

Besides, US crude oil stockpiles have been on the decline, easing oversupply concerns. Of particular attention, however, is the level of exports as this could also keep the global glut in play. Meanwhile, Saudi Arabia has expressed its intention to lower production in November and is also looking into cutting exports in an effort to keep the market stable.