WTI crude oil showed a minor sell-off after hitting a multi-month high. It hit a low of $85.01 yesterday and is currently trading at $85.35.
According to EIA, US crude oil inventories rose by 3.2 billion barrels for the week ended Mar 29, compared to a forecast of -0.3 million barrels.
Major factors for crude oil price movement-
US dollar index (Bullish)- negative for Crude. Major resistance - 105.20/106. Major support- 103.80/103.
Geopolitical tension- Escalation of tension between Israel and Hamas (positive for crude)
Ichimoku analysis (4- hour chart)
Tenken-Sen- $85.49
Kijun-Sen- $83.82
The immediate resistance is around $85.50. Any jump above targets $87/88.25. On the lower side, near-term support is around $84.25. Any breach below will drag the commodity down to $83.45/$83.
It is good to buy on dips around $84.20-25 with SL around $83 for a TP of $88.
