Crude oil declined nearly 6% this week on demand concern. It hit a low of $68.73 and is currently trading around $69.47.
According to EIA, crude inventories decreased by 6.9 million bbl the previous week, compared to a forecast of -0.6M.
US economy has added 142000 jobs in Aug, below the forecast of 162000. Unemployment rate came at 4.2% in-line with estimate of 4.2%. Average hourly earnings surged to 0.4% compared to a forecast of 0.30%.
Major factors supporting higher Crude oil prices,
US dollar index - Bearish
US treasury yield- bearish (positive for commodity market).
Major resistance- $71.70.Any breach above will take the commodity to the next level $72.80/$73.20. Major trend reversal only above $84.50.
The near-term support is around $68.70, any violation below targets $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.
