FxWirePro- Crude oil Daily Outlook

WTI crude oil  gained sharply as fueL demand increases due to US summer. It hit a high of $78.68 at the time of writing  and is currently trading at $78.67.

According to American Petroleum Institute, US crude inventories declined by 2.4 million barrels for the week ending June 7th . Markets eye US CPI and US fed monetary policy for further movement.

Major factors for crude oil price movement-

US dollar index (Bullish)- Negative  for Crude.

Major resistance - 106/107.

Major support- 104/103.

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

Ichimoku analysis (4- hour chart)

Tenken-Sen- $77.84

Kijun-Sen- $76.26

The immediate resistance is around $79. Any jump above the target of $79.67/$80/$80.55. On the lower side, near-term support is around $78.15. Any breach below will drag the commodity down to $77.50/$76.87/$76/$75.

It is good to sell on rallies  around $79 with SL around $80 for a TP of $75.