WTI crude oil showed a minor jump on supply disruptions. It hit a high of $79.46 yesterday and is currently trading at $79.
Wildfires in Western Canada have forced the evacuation of thousands from north-west of Fort Nelson. Previously, in 2023, wildfires had brought down crude oil supplies by 300000 barrels a day and around 1 million barrels a day in 2016.
The fiscal stimulus by China also supports crude oil prices at lower levels.
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 buy on dips around $79 with SL around $ 78 for a TP of $82.
