FxWirePro: US oil declines on strong inventory buildup, good to sell on rallies

Ichimoku Analysis (4- hour chart)

Tenken-Sen- $51.42

Kijun-Sen- $51.20

US oil has jumped more than 3.5% yesterday till $51.95 and started to decline from that level. US EIA has reported that US crude oil supplies rose by 7.5 million barrels compared to 2.93 million barrels. It hits an intraday low of $50.87 and is currently trading around $50.91.

Technically, near term resistance is around $51.15 and any indicative break beyond targets $51.54/51.80/52.16 (Feb 6th high).

On the flip side, significant support is around $50.68 and violation underneath will drag the commodity down till $50.38/$50/$49.30.

It is good to sell on rallies around $51.20-25 with SL around $52 for the TP of $49.30.