Crude oil lost its shine as Saudi plans production increase. It hit a low of $66.91 and is currently trading around $67.91.
According to the Energy Information Administration (EIA), crude oil inventories fell by 4.5 million barrels for the week ending Sep 20th compared to a forecast of --1.4 million barrels.
US dollar index - Bearish
US treasury yield- bearish (positive for commodity market).
Major resistance- $68.70. Any breach above will take the commodity to the next level $69.30/$70. Major trend reversal only above $72.50.
The near-term support is around $67.69, any violation below targets $67.25/$66.80.
Indicators (4- hour chart)
ADX- Bearish
CCI (50) - Bearish
It is good to sell on rallies around $69 with SL around $70 for TP of $67.
