Crude oil trades below trend line support, dip till $63 likely

• Major support -$64.65.
   
• US oil formed a temporary top almost a double top around $66.63 and started to decline from that level. It has broken trend line support $64.65 and deciding till $63.65 yesterday. The main reason for decline in oil price was due to increasing US supply fear. It is currently trading around $64.10.
   
• The number of rigs rose by 12 in the week of Jan 26th 2018 to 759, biggest weekly increase since Mar 2017. The rig count in the Permian region was highest since Nov 2013.  The API said in report that crude inventories rose by 900000 barrels last week.
   
• Technically, the pair has formed a double top around $66.63 and any major bullishness can be seen only above that level. Minor bullishness can be seen above $64.40 (hourly Kijun-Sen) and any break above will take the commodity to next level till $65/65.60.
   
• On the lower side, near term support is around $63.65 and any violation below will drag the commodity till $63/$62.51.

It is good to sell on rallies around $64.40 with SL around $65 for the TP of $63.05/$62.51.