WTI crude oil recovered slightly after strong US economic data. It hit a high of $77.80 yesterday and is currently trading at $77.91.
Markets anticipate the extension of the supply cut in the upcoming Jun2 OPEC+ meeting on June 2nd.
The weekly Baker Hughes oil and gas rigs count declined by 4 to 600 in the week ended May 24th. Oil rigs came unchanged at 407.
Major factors for crude oil price movement-
US dollar index (Bullish)- negative for Crude.
Major resistance - 105/106.50.
Major support- 104/103.
Geopolitical tension- easing tension between Israel and Gaza (negative for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $77.06
Kijun-Sen- $77.69
The immediate resistance is around $78.50. Any jump above the target of $79.30/$80/$80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $7. 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.
