FxWirePro- Crude oil Daily Outlook

WTI crude oil pared some pf its gains on strong US dollar.It hit a low of $78.89 at the time of writing  and is currently trading at $78.96.

Acccording to American Petroleum Institute, crude oil inventories dropped by 6.490 million barrels for the week ending May 17th .

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-  escalation of tension between Israel and Gaza ( positive  for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $79.76

Kijun-Sen- $78.35

The immediate resistance is around $79.35. Any jump above the target of $80/$80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $78.80 Any breach below will drag the commodity down to $78.25/ $77.23/$76.70/$75/$74.

It is good to sell on rallies around $80 with SL around $81 for a TP of $75.