WTI crude oil lost its shine on weak US demand. The jump in the US dollar also puts pressure on oil at higher levels. It hit a low of $80.27 at the time of writing and is currently trading at $80.93.
According to EIA, US crude oil inventories declined by about 2 million barrels for the week ended Mar 16th, compared to a forecast of -444K.
Major factors for crude oil price movement-
US dollar index (Bullish)- negative for Crude. Major resistance - 104.25/105. Major support- 103/102.40.
Geopolitical tension- UN resolution for cease-fire in GAZA (negative for crude)
Ichimoku analysis (4- hour chart)
Tenken-Sen- $81.07
Kijun-Sen- $81.68
The immediate resistance is around $82. Any jump above target $82.54/83.10. On the lower side, near-term support is around $80.80. Any breach below will drag the commodity down to $80.45/$80/$79.
It is good to buy on dips around $79.50 with SL around $77.90 for a TP of $83.50.
