FxWirePro- Crude Oil Daily Outlook

Crude oil-

WTI crude oil dropped below $80 after US Fed policy. It hit a low of $78.79 yesterday and is currently trading at $79.49.

According to the Energy Information Administration (EIA), US crude inventories rose by 7265000 barrels for the week ended Apr 26, compared to a forecast of  -1100000 barrels. Markets eye ceasefire talks between Israel and Hamas for further movement.

US economic data

US ISM manufacturing PMI- Weak (negative for crude)

Major factors for crude oil price movement-

US dollar index (Bearish)- Positive for Crude.

Major resistance - 106.50/107.20.

Major support- 105/103.80.

Geopolitical tension- Progress in ceasefire talks between Israel and Gaza (Negative for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $80.46

Kijun-Sen- $81.61

The immediate resistance is around $80. Any jump above the target of $80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $78.75. Any breach below will drag the commodity down to $78/$76.

It is good to sell on rallies around $82 with SL around $83.10 for a TP of $80/$78.