WTI OIL price eases on rising US output fears; overall picture is bullish

WTI oil price eased below $66 on Monday after hitting fresh three-year high at $66.64 last week and renewed attempts higher repeatedly stalled under new high.
Oli price came under pressure on fears that soaring US production could undermine efforts from world’s main oil producers to reduce production and neutralize impact from global oversupply which kept oil prices depressed for over two years.
Also, easing could be seen as corrective phase as studies on daily and weekly chart are overbought.
Daily RSI and slow stochastic are reversing from overbought territory and generating bearish signal.
Initial support lies at $65.18 (Fibo 38.2% of $62.83/$66.64 upleg) followed by 10SMA ($64.66) which should ideally contain and guard pivots at $63.69 (rising 20SMA) and $62.83 (19 Jan trough), loss of which could generate stronger bearish signal for deeper correction.
However, the move is seen as correction of larger steep uptrend as oil maintains strong bullish sentiment for further advance as WTI contract is on track for impressive performance in January which comes as extension of previous four straight bullish months.
Recent bulls approached target at $66.75 (Fibo 50% retracement of $107.45/$26.04 fall) and could extend towards psychological $70 barrier after completion of current consolidative / corrective phase.

Res: 66.45; 66.75; 67.00; 67.69
Sup: 65.18; 64.90; 64.65; 64.29