Crude oil showed a pullback of more than $4 on Middle East tension. It hit a high of $75.80 at the time of writing and is currently trading around $75.60.
The escalation of tension between Hamas and Israel supports crude oil at lower levels. Dovish comments from Fed chairman in the Jackson Hole symposium increase the chance of a rate cut in Sep.
Major factors supporting higher Crude oil price
US dollar index - Bearish
US treasury yield- weak (positive for commodity market).
Major resistance- $77.50. Any breach above will take the commodity to the next level of $78/$80. Major trend reversal only above $84.50.
The near-term support is around $76, any violation below targets $75/$74.75 (55- 4H EMA)/$74.40(34- 4H EMA0$73.65/$73.
Indicators (4- hour chart)
ADX- Bullish (4-hour chart)
CCI (50) and CCI (14)- Bullish (4- hour chart)
It is good to buy on dips around $76 with SL around $74.70 for TP of $78.
