Crude oil gained above $70 on supply concerns. It hit a high of $71.50 and is currently trading around $71.17.
Israel attacked Hezbollah and at least 100 were killed and 400 were injured. The escalation of tension in the Middle East supports oil prices at lower levels.
The People’s Bank of China (PBOC) injected CNY 235 bn and cut 14-day repo rate.
US dollar index - Bearish
US treasury yield- bearish (positive for commodity market).
Major resistance- $71.50. Any breach above will take the commodity to next level $71.70/$72.35/$73.20. Major trend reversal only above $78.
The near-term support is around $70.25, any violation below targets $69/$68/$67.25.
Indicators (4- hour chart)
ADX- Neutral
CCI (50) - Bullish
CCI (14)- Bearish
It is good to buy on dips around $70.50 with SL around $69 for TP of $74.70.
