WTI crude oil is still in correction mode and hanging around the area of interest around $50 per barrel. If this holds as support, a test of the swing high near $53 per barrel could be underway.

On the other hand, a larger correction could still make its way down to the ascending trend line connecting the lows of crude oil price action since mid-July. This lines up with the 61.8% Fibonacci retracement level and the 200 SMA dynamic support.

Speaking of moving averages, the 100 SMA is safely above the longer-term 200 SMA so the path of least resistance is to the upside. This means that the uptrend is more likely to resume than to reverse. The 100 SMA lines up with the 50% Fib and the current area of interest so it might be enough to keep losses in check.

Stochastic is still pointing down to show that selling pressure is present but the oscillator is dipping into oversold territory to signal a potential turnaround. RSI has a bit more room to fall so WTI crude oil could follow suit.

Both the American Petroleum Institute and the Energy Information Administration reported declines in crude oil stockpiles for the previous week, further easing oversupply concerns and reassuring market watchers that refineries are back to their normal operations. The attention is now on the OPEC and whether or not they will go for another extension of their output deal. However, record U.S. exports and the return of supply from a Libyan oilfield weighed on the commodity yesterday

Strengthening odds of a Fed rate hike in December are keeping a lid on commodity gains, though, as this could mean weaker business and consumer activity down the line. Earlier in the week, the ISM manufacturing survey featured a strong gain in the jobs component while the non-manufacturing version also included a small uptick. The ADP figure was slightly better than expected at 135K but analysts still expect a slowdown for the official NFP report.