FxWirePro- Crude oil Daily Outlook

Crude oil-

WTI crude oil holds below $80 on easing tension in the Middle East. It hit a high of $78.98 yesterday and is currently trading at $78.31.

According to the American Petroleum Institute, crude oil inventories rose by 0.509 million barrels for the week ending May 3, compared to a forecast of a decline of 1.43 million barrels.

Major factors for crude oil price movement-

US dollar index (Bullish)- Negative for Crude.

Major resistance - 106.50/107.20.

Major support- 105/103.80.

Geopolitical tension-  ceasefire deal between Israel and Gaza under progress (negative for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $78.32

Kijun-Sen- $79.69

The immediate resistance is around $78.70. Any jump above the target of $79.20/$80/$80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $76. Any breach below will drag the commodity down to $75/$74.

It is good to sell on rallies around $78.25-30 with SL around $79.20 for a TP of $74.50.