FxWirePro- Crude oil Daily Outlook

Crude oil-

WTI crude oil showed a minor sell-off after hitting a 7-week high. It hit a high of $81.12 yesterday and is currently trading at $80.64.

 Oil prices was one of the best performers in the past two weeks on supply disruptions and an increase in demand due to the summer season in the US.

The escalation of tension in the Middle East as Israeli troops advance into the Gaza Strip city of Rafah.

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- $80.68

Kijun-Sen- $79.34

The immediate resistance is around $8150—any jump above the target of $82/$83.50. On the lower side, near-term support is around $80. Any breach below will drag the commodity down to $79/ $78.25/$77.60/$76.87/$76/$75.

It is good to buy on dips around $80.10-15 with SL around $79 for a TP of $83.