FxWirePro: US Oil trades higher on hopes of renewed sanctions on Iran, good to buy on dips

• WTI crude oil has shown a huge jump today after hitting low of $49.11 yesterday on account of further output cut hopes by OPEC and also due to Hurricane Nate. Almost 92.61% of crude oil production capacity in the Gulf of Mexico was shut in.
   
• US president Donald Trump is poised to announce renewed sanctions on Iran will lift the crude oil prices higher.
   
• Saudi Arabian Oil Co also known as Aramco plans to cut 560000 barrels per day in November to reduce the increasing supply.
   
• US Oil has formed a temporary top around $52.83 and started to decline from that level. The commodity has declined till $49.11 and jumped till $50.30.  But minor bullishness can be seen only above $51.29 (61.8% retracement of $52.83 and $49.75).  
   
• On the higher side, near term resistance is around $50.60 (38.2% fibo) and any break above will take the commodity to next level till $51.29 (daily Tenkan-Sen)/$51.97. Short term bullish continuation only above $52.83.
   
• The near term major support is around $49 (55- day EMA) and any break below will drag the commodity down till $48.36 (61.8% fibo)/$47.03.

It is good to buy on dips around $49.80-$49.85 with SL around $49 for the SL around $51.29/$52.