Crude oil showed a nice bounce back above $69.50 on supply concerns. It hits a low of $65.29 and is currently trading around $69.75
Tropical storm Francine struck the US coast on Wednesday as a Category 2 storm that affected nearly 42% of crude oil production.
US dollar index - Bearish
US treasury yield- bearish (positive for commodity market).
Major resistance- $70. Any breach above will take the commodity to next level $71.70/$72.80/$73.20. Major trend reversal only above $84.50.
The near -term support is around $68, any violation below targets %67/$65.
Indicators (4- hour chart)
ADX- Neutral
CCI (50) - Bullish
CCI (14)- Bullish
It is good to buy on dips around $69 with SL around $68 for TP of $71.70.
