WTI crude oil is on a tear but is approaching a ceiling at the $66.55 per barrel mark. If this holds, price could dip back to the nearby support areas.

Technical indicators are confirming that resistance is more likely to hold than to break. The 100 SMA is below the 200 SMA to signal that the path of least resistance is to the downside, and the gap between the moving averages is widening to reflect strengthening bearish pressure.

Stochastic has been indicating overbought conditions for quite some time, and turning lower would signal that bears are ready to take over. Similarly RSI has been in the overbought zone to reflect exhaustion among buyers.

The next support zone is around the $64 per barrel mark, which is near the 200 SMA dynamic inflection point. From there, sellers could also book profits at the $62 per barrel lows.

Crude oil could take cues from overall market sentiment, especially with traders on the lookout for Fed tapering clues.

The upcoming preliminary US GDP and core PCE price index might impact monetary policy outlook since stronger growth and inflation data could mean that the economy does not need as much stimulus.

The Energy Information Administration reported a slightly lower than expected increase inventories in the previous week at 1.3 billion barrels versus the expected build of 1.5 million barrels. Another smaller increase or a surprise draw this time would confirm strengthening demand, which would then be bullish for the commodity.

On the other hand, a larger than expected increase would suggest that supply remains elevated or that businesses are hesitant to increase their purchases of fuel and energy. Note that the surge in COVID-19 cases and fatalities in India could still result to another wave of lockdown restrictions, which would dampen investor optimism and crude oil demand.