Crude oil trades weak on production increase, good to sell on rallies

rude oil declined nearly 6% this week on a production increase. It hits a low of  $65.29 and is currently trading around $67.80.

The anticipated Libya output boost and production increase by OPEC puts pressure on oil at higher levels.

US dollar index - Bearish

US treasury yield-  bearish (positive for commodity market).

Major resistance- $68.70. Any breach above will take the commodity to the next level $69.30/$70. Major trend reversal only above $72.50.

The near-term support is around $66.91, any violation below targets $66/$65.59/$65.

Indicators (4- hour chart)

ADX- Bearish

CCI (50) - Bearish

It is good to sell on rallies around $69 with SL around $70 for TP of $67.