FxWirePro: Buy US Oil on dips

Major Support- $57.20

US Oil has shown a massive recovery of more than $4 from low of $54.83made on Nov 20th. The jump was mainly due to US-China trade optimism. The Chinese top negotiator had a telephonic call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin , Chinese Ministry of Commerce said in online statement "Both sides discussed resolving core issues of common concern, reached consensus on how to resolve related problems (and) agreed to stay in contact over remaining issues for a phase one agreement," The commodity hits high of $58.29 and is currently trading around $58.13.

Markets eye US American Petroleum Institute (API) and EIA inventory data which is to be released today and tomorrow for further direction.

On the lower side, near time major support is around $57.20 (Cloud top) and any indicative break below will drag the oil price down till $56/$54.80. Major weakness only below $53.70.

The major trend reversal resistance is around $58.75, violation above targets $60.50.

It is good to buy on dips around $57.70-75 with SL around $57 for the TP of $60.50.