WTI crude oil showed a minor sell-off after forming a minor top around $83.67. It hit a low of $82.67 at the time of writing and is currently trading at $82.68.
According to the US Energy Information Administration (EIA), US crude inventories declined by 6.3 million barrels for the week ended Apr 19, compared with an increase of 1.6 million barrels.
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- Easing of tension between Israel and Iran (Negative for crude)
Ichimoku analysis (4- hour chart)
Tenken-Sen- $83.03
Kijun-Sen- $83.13
The immediate resistance is around $83.05. Any jump above targets of $83.70/$84/$85/$86.20/$87. On the lower side, near-term support is around $82.50. Any breach below will drag the commodity down to $81.95/$80.70/$80.
It is good to buy on dips around $80 with SL around $78 for a TP of $85.
