WTI crude oil gained slightly on an escalation of geo-political tension. gained sharply despite the US dollar's strength. It hit a high of $82.67 yesterday and is currently trading at $82.63.
US gasoline demand dropped sharply to 8.83 million barrels per day, the lowest since Feb, according to EIA. According to Baker Hughes, the total number of rig counts fell by six to 479 this week, the lowest since 2021.
Major factors for crude oil price movement-
US dollar index (Bullish)- Negative for Crude.
Major resistance - 106.20/107.
Major support- 105.50/104.
Geopolitical tension- Escalation of tension between Israel and Lebanon ( positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $81.81
Kijun-Sen- $81.42
The immediate resistance is around $82. Any jump above the target of 83/ $83.50/$84. On the lower side, near-term support is around $81.40. 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.
