WTI crude oil trades weak despite OPEC meeting.It hit a low of $76.63 at the time of writing and is currently trading at $78.96.
The Organization of the Petroleum Exporting Countries (OPEC) including Russia and Saudi Arabia agreed to extend its output cuts of 5.86 million barrels per day. This includes 3.66 million bpd plus voluntary cuts by eight members of 2.2 million.
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- Optimism in ceasefire talks between Israel and Gaza ( negative for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $77.97
Kijun-Sen- $78.60
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 buy on dips around $80 with SL around $79 for a TP of $83.
