WTI crude oil trades weak on easing tensions between Israel and Iran. It hit a low of $80.68 at the time of writing and is currently trading at $81.31.
Any escalation of tension between Iran and Israel will affect the supplies from the Strait of Hormuz. It is located between Oman and Iran in which large volumes (around 21% of global oil consumption) of oil flow through the strait.
Major factors for crude oil price movement-
US dollar index (Bullish)- negative for Crude. Major resistance - 106.50/107.20. Major support- 105/103.80.
Geopolitical tension- Escalation of tension between Israel and Iran (Positive for crude)
Ichimoku analysis (4- hour chart)
Tenken-Sen- $83.35
Kijun-Sen- $83.59
The immediate resistance is around $81.85. Any jump above target $82.25/$83/$83.60. On the lower side, near-term support is around $80. Any breach below will drag the commodity down to $78/$76.
It is good to buy on dips around $80 with SL around $78 for a TP of $85.
