WTI crude oil trades are weak due to global growth concerns. It hit a low of $80.18 yesterday and is currently trading at $80.72.
US crude inventories fell by 4.4 million barrels last week, compared to a forecast of 33000 barrels.
The escalation of Middle East tension and rate cut hopes support oil prices at lower levels.
Major factors for crude oil price movement-
US dollar index (Bearish)- Positive for Crude.
Major resistance - 105/106.20.
Major support- 104/103.
Ichimoku analysis (4- hour chart)
Tenken-Sen- $81.03
Kijun-Sen- $81.95
The immediate resistance is around $81.25. Any jump above the target of $82/$82.65/$83. On the lower side, near-term support is around $80. Any breach below will drag the commodity down to $79/$78.
It is good to sell on rallies around $81 with SL around $82 for a TP of $78.
