WTI crude oil pared its gains after a minor pullback above $80. It hit a low of $78.42 at the time of writing and is currently trading at $78.55.
Hawkish comments from Fed members such as Bostic, Barr, Waller, and Jefferson yesterday put pressure on crude at higher levels.
Markets eye political developments in Iran after the death of President Ebrahim Raisi.
Major factors for crude oil price movement-
US dollar index (Bearish)- positive for Crude.
Major resistance - 105/106.50.
Major support- 104/103.
Geopolitical tension- ceasefire talks stalled. (positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $79.25
Kijun-Sen- $78.36
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.
