WTI oil price moved lower on Tuesday, pressured by stronger dollar and overbought techs which suggest correction.
Oil price posted marginally higher high at $64.87 on Monday (the highest in more than three years) but was unable to sustain gains.
Corrective action looks as likely scenario in the near-term, as overbought daily indicators turned south and are about to generate stronger bearish signal on reversal from overbought territory.
Corrective pullback eyes initial support at $63.08, but could extend towards next significant points at $61.51 (Fibo 38.2% of $56.08/$64.87) and $61.00 (rising 20SMA) on stronger bearish acceleration.
Overall bullish structure favors further advance after correction, as strong bullish sentiment on OPEC-led production cut which reduced global oversupply, is expected to drive oil price higher.
Broader bulls will be looking for test of next target at $66.72 (50% retracement of $107.40/$26.04) after completion of corrective phase.
Res: 64.87; 65.00; 65.88; 66.72
Sup: 63.75; 63.08; 61.79; 61.51
