WTI crude oil is still trading inside its ascending channel on the 4-hour time frame but there are signs that the rally is slowing. Price is stalling at the mid-channel area of interest and loos ready for another test of support.

The 100 SMA is still above the longer-term 200 SMA on the 4-hour time frame so the path of least resistance is to the upside. However, the gap is narrowing and a downward crossover looks imminent, and this might draw more sellers to the mix. For now, the short-term moving average appears to be holding as near-term support.

Stochastic is turning higher to show that buying pressure is returning and this might still be enough to push crude oil back to the resistance around $54 per barrel. RSI, on the other hand, is on its way down so the commodity could follow suit.

Prices took a bit of a hit earlier on as traders booked profits off the recent strong rallies. Analysts also pointed to indicators of a tightening market as U.S. commercial crude oil stocks have dropped 15% from March records. However, a part of this drawdown has been due to rising exports as a result of the steep discount of WTI crude to Brent, which makes it attractive for American producers to export their oil.

Overseas U.S. crude oil shipments have soared from nearly zero before the government loosened export restrictions in late 2015 to around 2.6 million barrels per day.

Meanwhile, traders continue to wait for more confirmation that the OPEC is ready to extend its output deal until the end of 2018. The lack of remarks from energy ministers in recent trading sessions likely prompted profit-taking action.

Looking ahead, data on oil rig counts could influence price action next, along with risk sentiment. As for the dollar, the uncertainty surrounding the next Fed head is keeping a lid on its gains, something that could also prove to be positive for crude oil.