FxWirePro: US Oil downside capped by 233- HMA, good to buy on dips
Major Support - $60.74 (233- H MA). US oil continuing its weakness for the third consecutive day. The commodity hits intraday low of $60.79 and is currently trading around $61.32. Oil prices continuing its weakness after…
US oil continuing its weakness for the third consecutive day. The commodity hits intraday low of $60.79 and is currently trading around $61.32.
Oil prices continuing its weakness after hitting high of $62.62. US crude inventory release by American petroleum institute shows a small draw of 907000 barrels compared to forecast of 1.33 million barrels addition.
US crude production has been continuously increasing and crossed 10 million barrels per day ahead of Saudi and behind Russia.
On the lower side, near term major support is around $60.74 and any break below will drag the pair down till $60/$59.70. Short term bullish invalidation only below $58.05.
The near term intraday resistance is around $61.37 (55- H MA) and any break above will take the commodity till 61.84 yesterday’s high/$62.50.
It is good to buy on dips around $61-$61.10 with SL around $60.74 for the TP of $61.84/$62.40.
