Crude oil - Commodity of the week
Crude oil pared most of its gains on global economic growth concerns. It hit a high of $77.55 yesterday and is currently trading around $74.74.
The shift to Electric vehicles from petrol in major economies like China and the US puts pressure on oil prices at a higher level.
According to the American Petroleum Institute (API), crude inventories fell by 3.407 million barrels for the week ending Aug 23rd.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market).
Major resistance- $76. Any breach above will take the commodity to the next level $78/$80. Major trend reversal only above $84.50.
The near -term support is around $74.40, any violation below targets $73.81 (61.8% fib)/$73.
Indicators (4- hour chart)
ADX- Neutral
CCI (50) - Bullish
CCI (14)- Bearish
It is good to sell on rallies around $76 with SL around $78 for TP of $71.70.
