FxWirePro- WTI crude Daily outlook

Crude oil-

WTI crude oil trades weak on the strong US dollar. It hit a low of $77.32 at the time of writing and is currently trading at $77.99.

According to the American Petroleum Institute (API), crude inventories increased by 2.5 million barrels for the week ending May 17th, 2024. The Department of Energy (DOE) reported that the inventories in the Strategic Petroleum Reserve (SPR) rose by 1 million barrels as of May 17th.

Major factors for crude oil price movement-

US dollar index (Bearish)- positive for Crude.

Major resistance - 105/106.50.

Major support- 104/103.

Geopolitical tension-  ceasefire talks stalled. (positive for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $78.29

Kijun-Sen- $78.69

The immediate resistance is around $80. Any jump above the target of $80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $77.90. Any breach below will drag the commodity down to $76.70/$75/$74.

It is good to sell on rallies around $80 with SL around $82 for a TP of $75.