FxWirePro: Sell US oil on rallies

Ichimoku Analysis (1-Hour)

Tenken-Sen- $42.08

Kijun-Sen- $42.28

WTI crude oil has once again recovered after hitting a low of $41.60. The Short term trend is still bullishness as long as support $41.50 holds. The weak US retail sales data and the US and China trade war are putting pressure on commodities at higher levels. According to Baker Hughes, the number of rigs count fell by 3 to an all-time low of 244 in the week of Aug 14.

Technically, the commodity is facing primary resistance at $42, and any convincing break above targets $43/$43.50. Significant buying only above $43.50.

The pair is trading below 100- H MA, a significant move only if it breaks below $41.50. Any indicative violation below will drag the commodity to $40.50/$40.

It is good to sell on rallies around $42.15-20 with SL around $42.80 for the TP of $40.55.