Crude oil-
WTI crude oil showed a minor sell-off on strong US dollar.It hit a high of $78.23 yesterday and is currently trading at $77.69
Oil surged more than $6 as summer season in US would increase travel demand. The upcoming US CPI and Fed monetary policy could decide the future movement of oil price.
Other factors such as decrease in Saudi Arabia exports to China and icrease in strategic petroleum reserve by US are affecting crude oil prices.
Major factors for crude oil price movement-
US dollar index (Bullish)- Negative for Crude.
Major resistance - 105/106.50.
Major support- 104/103.
Geopolitical tension- No further developments in ceasefire talks between Israel and Gaza ( positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $76.70
Kijun-Sen- $75.45
The immediate resistance is around $78.25. Any jump above the target of $79/$80/$80.55. On the lower side, near-term support is around $77.50. Any breach below will drag the commodity down to $76.87/$76/$75.
It is good to sell on rallies around $78.75-80 with SL around $80 for a TP of $75.
