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Crude oil showed a nice pullback on an escalation of Middle East tension.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market). Market anticipates rate cut by Sep.
According to reports from the White House, Iran will attack Israel this week. It will reduce the supply of crude oil.
Major resistance- $80.20.Any breach above will take the commodity to the next level $80.60/$81.54/$82.90/$84.50. Major trend reversal only above $84.50.
The near-term support is around $79, any violation below targets $78/$77.40.
It is good to buy on dips around $79 with SL around $77.40 for a TP of 84.50.
