WTI crude oil trades weak for the second consecutive week on easing demand. It hit a low of $78.17 at the time of writing and is currently trading at $78.18.
China’s economic slowdown and trade war between the US and China puts pressure on oil at lower levels. Markets eye July month of monetary policy and hints about rate cuts for further direction.
Major factors for crude oil price movement-
US dollar index (Bearish)- Positive for Crude.
Major resistance - 104.25/105.
Major support- 103.60/103.
Ichimoku analysis (4- hour chart)
Tenken-Sen- $79.80
Kijun-Sen- $80.60
The immediate resistance is around $79.20. Any jump above the target of $80/$80.60/$81.25/$81.75/$82. On the lower side, near-term support is around $78. Any breach below will drag the commodity down to $77/$76.
It is good to sell on rallies around $78.85-90 with SL around $80 for a TP of $77.
