FxWirePro: US Oil Daily outlook
Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $39.95
Kijun-Sen- $39.95
WTI crude oil showed a minor recovery yesterday after positive Crude inventories data. According to EIA, crude oil inventory draw of 2 million barrels compared to forecast of 1 million barrels continues to trade lower for 3rd consecutive days on rising COVID-19 cases. . The total number of confirmed coronavirus cases was 343 lakhs and 10.21 lakhs deaths worldwide. It hits an intraday low of $37.60 and is currently trading around $38.56.
Technically, the commodity is trading well below 200- day MA AT $39.38. It confirms further weakness and a dip till $36 likely. The pair is facing strong resistance at $39.92, a significant break above targets $40.50/$41.50/$42.40/$43. Significant buying only above $43.75.
It is good to sell on rallies around $39.25-30 with SL around $40 for the TP of $37.90/$36.
