Crude oil showed a nice pullback on strong US retail sales.
US retail sales surged sharply to 1% biggest increase in the past 1-1/2 years, compared to a forecast of 0.30%. Automobile sales mainly led the jump.
Markets eye Gaza ceasefire talks and Middle East geo-political situation for further direction.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market). Market anticipates rate cut by Sep.
Major resistance- $79.Any breach above will take the commodity to the next level $80.20/$80.60/$81.54/$82.90/$84.50. Major trend reversal only above $84.50.
The near-term support is around $77.80, any violation below targets is $77.40/$76.
It is good to buy on dips around $77 with SL around $76 for TP of 84.
