WTI crude oil lost its shine after hawkish fed members. It hit a low of $77.75 at the time of writing and is currently trading at $78.47.
The easing tension in the Middle East has cooled down the oil prices from a multi-month high $87. According to Baker Hughes, the total rig count fell by 2 to 603 this week, compared to a forecast of 731 rigs same time last year.
Major factors for crude oil price movement-
US dollar index (Bearish)- positive for Crude.
Major resistance - 105.75/106.50.
Major support- 105/103.80.
Geopolitical tension- ceasefire talks initiated by Egypt in Cairo. (negative for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $78.84
Kijun-Sen- $78.40
The immediate resistance is around $80. Any jump above the target of $80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $77.90. Any breach below will drag the commodity down to $76.70/$75/$74.
It is good to sell on rallies around $80 with SL around $82 for a TP of $75.
