FxWirePro: Buy US oil on dips

Ichimoku Analysis (8 Hour)

Tenken-Sen- $43.05

Kijun-Sen- $42.60

WTI crude oil continues to trade higher for 2nd consecutive days. The commodity is trading in a narrow range between $41.55 and $43.75 for the past one week. According to the US Department of the interior, crude oil and natural gas production (82% and 59%) got curbed due to hurricane. The upbeat market mood due to COVID -19 vaccines is supporting oil prices at lower levels.

Technically, the commodity is facing primary resistance at $43.80, and any convincing break above targets $44.95/$48. Significant buying only above $50.

The pair is facing strong support at 55- 8H EMA at $42.40, a significant break below targets $41. Any indicative violation below will drag the commodity to $40/$38.71.

It is good to buy on dips around $43.15-20 with SL around $42.35 for the TP of $44.80.