WTI crude oil gained sharply on rate cut hopes.It hit a high of $75.85 yesterday and is currently trading at $75.29.
The rate cut by major central banks ECB and Bank Of Canada this week has increased the speculation of rate cut by the Fed.
Markets eye US Non Farm Payroll data for further movement.
Major factors for crude oil price movement-
US dollar index (Bearish)- Positive for Crude.
Major resistance - 105/106.50.
Major support- 104/103.
Geopolitical tension- No further developments in ceasefire talks between Israel and Gaza ( positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $74.87
Kijun-Sen- $74.88
The immediate resistance is around $76. Any jump above the target of $77.45/$80. On the lower side, near-term support is around $74.85. Any breach below will drag the commodity down to $73.75/ $73/$72/$70.
It is good to sell on rallies around $75.25-30 with SL around $77 for a TP of $70.
