FxWirePro-Crude Oil Daily Outlook

WTI crude oil showed a minor pullback after easing inflation. It hit a high of  $79.14 yesterday and is currently trading at $78.52.

According to the Energy Information Agency (EIA),  Crude oil inventories dropped by 2.5 million barrels for the week ending May 3rd, 2024 compared to a -223000 million barrels expected.

Markets eye US jobless claims, Building permits, Philly Fed Manufacturing Index for further movement.

Major factors for crude oil price movement-

US dollar index (Bearish)- positive for Crude.

Major resistance - 105.75/106.50.

Major support- 105/103.80.

Geopolitical tension-  ceasefire talks stalled. (positive for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $77.90

Kijun-Sen- $78.30

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 $77.90. Any breach below will drag the commodity down to $76.70/$75/$74.

It is good to sell on rallies around $80 with SL around $82 for a TP of $75.