WTI crude oil pared some of its gains on easing tension between Israel and Hamas. It hit a low of $82.23 yesterday and is currently trading at $83.49.
Israel's new proposal includes a 40-day truce in the Gaza war and the release of hostages. Markets eye ceasefire talks between Israel and Hamas for further movement.
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- Progress in ceasefire talks between Israel and Gaza (Negative for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $83.65
Kijun-Sen- $82.64
The immediate resistance is around $83.65. Any jump above the target of $84/$85/$86.20/$87. On the lower side, near-term support is around $82.60. Any breach below will drag the commodity down to $81.95/$80.70/$80.
It is good to sell on rallies around $84 with SL around $85 for a TP of $80.
