FxWirePro- Crude oil Daily Outlook

WTI crude oil recovered slightly on increasing demand. It hit a high of $79.01 at the time of writing and is currently trading at $78.88.

Markets eye the OPEC meeting on June 2nd for further movement. The expectations of an extension of supply cuts of 2.2 million barrels per day in the OPEC meeting and hopes of increasing demand in the US  due to summer support prices at lower levels.

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- $78.27

Kijun-Sen- $77.52

The immediate resistance is around $79.30. Any jump above the target of $80/$80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $78.25 Any breach below will drag the commodity down to $77.23/$76.70/$75/$74.

It is good to sell on rallies around $80 with SL around $82 for a TP of $75.