FxWirePro: US Oil trades well below 200-4H EMA, dip till $36 likely

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $39.59

Kijun-Sen- $39.59WTI crude oil continues to trade lower for 3rd consecutive days on rising COVID-19 cases. . The total number of confirmed coronavirus cases was 338 lakhs and 10.13 lakhs deaths worldwide. According to API, the inventory dropped by 831000 barrels compared to an inventory draw of 2.325 M. It hits an intraday low of $38.40 and is currently trading around $38.88.

Technically, the commodity is trading well below trend line support and 100- 4H MA. This confirms further weakness and a dip till $37.90/$36 likely.

The pair is facing strong resistance at $42, a significant break above targets $42.40/$43. Significant buying only above $43.75. the minor resistance is at $40.16/$40.75/$41.50.

It is good to sell on rallies around $39.45-50 with SL around $40. for the TP of $38.71/$37.