Ichimoku Analysis (Weekly Chart)
Tenken-Sen- $39.37
Kijun-Sen- $27.23
WTI crude oil jumped more than $2 yesterday to $43.50 and started to decline from that level. The jump came after better than expected US EIA crude inventory report. The inventory fell last week by -7.4M compared to an estimate of -3.4M. But the US-China trade tension and spread of the second wave of coronavirus is putting pressure on oil at higher levels.
Technically, the commodity is facing primary resistance at $43.80 (55-W EMA), and any convincing break above targets $44/$44.97.
On the lower side, a significant move only if it breaks below $41.50. Any indicative violation below will drag the commodity $40.50/$39.60. Significant selling only if it breaks $38.50.
It is good to buy on dips around $41.55-60 with SL around $40.50 for the TP of $44.95.
