Crude oil gained sharply on supply concerns. It hit a high of $77.55 yesterday and is currently trading around $75.60.
Libya’s eastern government in Benghazi said that oil production and exports would be halted due to fighting for control of the Central Bank. Libya exports more than 1 million bpd.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market).
Major resistance- $78. Any breach above will take the commodity to the next level of $79/$80. Major trend reversal only above $84.50.
The near-term support is around $74.60 (55- 4H EMA), any violation below targets $74.10 (34- 4H EMA)/$73.65/$73.
Indicators (4- hour chart)
ADX- Bullish (4-hour chart)
CCI (50) and CCI (14)- Bullish (4- hour chart)
It is good to buy on dips around $76 with SL around $74.90 for TP of $78.
