FxWirePro-Crude oil Daily Outlook

WTI crude oil pared some of its gains after dismal US economic data. It hit a low of $80.68 at the time of writing and is currently trading at $83.49.

According to the American Petroleum Institute (API), US crude inventories rose by 4.9 million barrels for the week ended Apr 26, compared to a forecast of  1.5 million barrels. Markets eye ceasefire talks between Israel and Hamas for further movement.

US economic data

Chicago PMI- Weak (negative for crude)

CB consumer confidence- weak (bearish for crude)

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- $82.09

Kijun-Sen- $82.67

The immediate resistance is around $81.55. Any jump above the target of $82.08/$82.53/$83. 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 sell on rallies around $82 with SL around $83.10 for a TP of $80/$78.