Crude oil Daily Outlook

WTI crude oil  showed a minor pull back despite strong US dollar.It hit a high of $76.22 yesterday  and is currently trading at $75.77.

The US dollar gained strength after upbeat US Non Farm Payroll data. Markets eye US Fed monetary policy on Wednesday for further movement. The increase in fuel demand in US due to summer season also supports the Oil prices at lower levels. Israel attacked UN linked school in central Gaza and killed 40 people prevents the oil from further fall.

Major factors for crude oil price movement-

US dollar index (Bullish)- Negative  for Crude.

Major resistance - 105/106.50.

Major support- 104/103.

Geopolitical tension-  No further developments in ceasefire talks between Israel and Gaza ( positive for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $75.71

Kijun-Sen- $74.34

The immediate resistance is around $76. Any jump above the target of $77.45/$80. On the lower side, near-term support is around $74.85. Any breach below will drag the commodity down to $73.75/ $73/$72/$70.

It is good to sell on rallies  around $76 with SL around $77.75 for a TP of $70.