WTI crude oil gained sharply despite US dollar strength. It hit a high of $82.67 yesterday and is currently trading at $82.63.
The Oil is trading higher for a third consecutive week due to supply disruption in the Middle East. Markets are eyeing US PCE inflation data 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- Escalation of tension between Israel and Lebanon ( positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $82.25
Kijun-Sen- $81.65
The immediate resistance is around $83. Any jump above the target of $83.50/$84. On the lower side, near-term support is around $81.75. Any breach below will drag the commodity down to $81.12/$80/$79/ $78.25/$77.60/$76.87/$76/$75.
It is good to buy on dips around $81 with SL around $80 for a TP of $83.50.
