Crude oil showed a minor pullback after a massive sell-off. It hit a low of $71.49 at the time of writing and is currently trading around $74.
Saudi Arabia and its OPEC need to take decision on production increase from Oct or to delay due to global economic growth uncertainty.
Crude oil prices dropped after the US Nonfarm payroll was revised down by 818000. Markets eye Fed chairman speech at Jackson Hole symposium.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market). The market anticipates rate cut by Sep.
Major resistance- $74.35. Any breach above will take the commodity to the next level $75/$75.65/$76.80/$78/$80. Major trend reversal only above $84.50.
The near-term support is around $72, any violation below targets $71.50/$70.
It is good to sell on rallies around $74.25-30 with SL around $75.65 for TP of $71.70.
