Crude oil lost its shine on easing Middle East tension. It hit a low of $72.67 yesterday and is currently trading around $73.09.
EIA cuts demand forecast in 2024 due to weak growth in US and China.
According to the American Petroleum Institute (API), US crude inventories rose sharply by 10.9 million barrels for the week ending Oct 4th, compared to a forecast of 1.95 million barrels.
US dollar index - Bullish
US treasury yield- bullish (negative for commodity market).
Major resistance- $74. Any breach above will take the commodity to next level $74.89/$75.50/$75.97. Major trend reversal only above $80.
The near-term support is around $72.45, any violation below targets $71.80/$70.90/$70.
Indicators (4- hour chart)
ADX- neutral
CCI (50) - Bullish
It is good to sell on rallies around $75 with SL around $76.20 for TP of $70.90.
