WTI crude oil is still moving inside its ascending channel on the 4-hour time frame after recently bouncing off support and the 200 SMA. The 100 SMA is above the longer-term 200 SMA so the path of least resistance is to the upside, which means that the uptrend is more likely to continue than to reverse.

However, the commodity price appears to be encountering a strong roadblock at the mid-channel area of interest. If this keeps holding as resistance, price could make another test of support soon. On the other hand, an upside break past the $52 per barrel level could clear the way for a test of the resistance around $55 per barrel or at least the latest highs.

Stochastic is turning lower from the overbought zone, however, so selling pressure could pick up. RSI is also pointing down, which means that sellers are ready to take over crude oil price action.

Fundamentals point to more gains, though, as talks of an OPEC deal extension have been stronger this week. For one, there were sources that shared that the cartel is looking into a nine-month extension of the production cap, which would then keep it in place until the end of 2018. Other sources say that the OPEC is still looking at a time frame of six to nine months.

Meanwhile, US stockpiles have shown larger than expected reductions, also easing fears of a global glut. Traders could continue to keep close tabs on rig counts and inventory levels, including export levels, to gauge if supply pressures are fading.

On top of all that, market sentiment is also seen to play a key role in pushing crude oil around from here as markets are also focusing on geopolitical risks, particularly those in Europe, North Korea, and New Zealand. The uncertainty surrounding the political situations in Europe and New Zealand could keep a lid on risk-taking and discourage traders from buying up commodities, but the recent set of mostly positive data from China could keep risk appetite in play.