WTI crude oil holds above $80 on optimistic demand forecasts. It hit a high of $78.85 yesterday and is currently trading at $78.18.
Goldman Sachs predicted that solid US summer demand will push the oil market to a deficit of 1.3 million barrels per day. OPEC has lowered its first-quarter demand by 50000 bpd and increased second-quarter demand by 50000.
US PPI - weak (bullish for crude)
US jobless claims- weak (negative for crude)
Major factors for crude oil price movement-
US dollar index (Bullish)- Negative for Crude.
Major resistance - 105.50/107.
Major support- 104/103.
Geopolitical tension- Escalation of tension between Israel and Gaza ( positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $78.24
Kijun-Sen- $77.26
The immediate resistance is around $79.30. Any jump above the target of $79.67/$80/$80.55. On the lower side, near-term support is around $7760. Any breach below will drag the commodity down to $76.87/$76/$75.
It is good to sell on rallies around $78.75-80 with SL around $80 for a TP of $75.
