Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $42.17
Kijun-Sen- $41.98
WTI crude oil surged sharply after better than expected EIA Crude inventory. The inventory fell by 4.5 million barrels compared to an estimate of 3.4 million barrels. The US crude production expected to decline by 990000 BPD this year to 11.26 million bpd vs forecast of 600000 declines previous month. The US-China trade tension and spread of the second wave of coronavirus are putting pressure on oil at higher levels.
Technically, the commodity is facing primary resistance at $43.50, and any convincing break above targets $44/$44.97.
On the lower side, a significant move only if it breaks below $41.50. Any indicative violation below will drag the commodity $40.50/$39.60. Significant selling only if it breaks $38.50.
It is good to buy on dips around $42.45-50 with SL around $41.50 for the TP of $44.95.
