Crude oil declined more than 4% yesterday on global demand concerns and OPEC production hikes.It hit a low of $69.15 and is currently trading around $70.90.
China’s Caixin services PMI dropped to 51.6 in Aug compared to a forecast of 52.20.OPEC + is planning to hike production in the October meeting also puts pressure on crude oil prices.
Major factors supporting higher Crude oil price
US dollar index - Bullish
US treasury yield- bearish (positive for commodity market).
Major resistance- $71.70.Any breach above will take the commodity to next level $72.80/$73.20. Major trend reversal only above $84.50.
The near-term support is around $70, any violation below targets $69/$67.75.
Indicators (4- hour chart)
ADX- Bearish
CCI (50) - Bearish
CCI (14)- Bearish
It is good to sell on rallies around $71.48-50 with SL around $72.50 for TP of $67.75.
