Crude oil gained sharply as Middle East tension intensified. It hit a high of $72.45 and is currently trading around $71.69.
Geopolitical tension-
Iran, a pro-Hezbollah and Hamas militants launched dozens of missiles into Israel yesterday. According to the Energy Information Administration (EIA), crude oil inventories rose by 3.9 million barrels for the week ending Sep 27th compared to a forecast of -1.5 million barrels.
US dollar index - Bearish
US treasury yield- bearish (positive for commodity market).
Major resistance- $72.50. Any breach above will take the commodity to next level $73.60/$74.80/$76./$77.05. Major trend reversal only above $80.
The near-term support is around $70.50, any violation below targets $69.80/$69/$67.70.
Indicators (4- hour chart)
ADX- Bearish
CCI (50) - Bearish
It is good to buy above $72.50 with SL around $71.80 for TP of $75.
