Crude oil showed a minor bounce back above $68 on supply concerns. It hit a low of $65.29 and is currently trading around $68.10
Crude oil inventories build up by 800,000 barrels for the week ended Sep 6th compared to a forecast of 900,000 from the previous month -6.9M.
Tropical storm Francine got strengthened in the Gulf of Mexico and will affect 15% of US oil output.
US dollar index - Neutral
US treasury yield- bearish (positive for commodity market).
Major resistance- $68.50. Any breach above will take the commodity to the next level $69.05/$70/$71.70/$72.80/$73.20. Major trend reversal only above $84.50.
The near-term support is around $65, any violation below targets $63/$60.
Indicators (4- hour chart)
ADX- Neutral
CCI (50) - Bearish
CCI (14)- Bullish
It is good to buy on dips around $67.50 with SL around $65.59 for TP of $71.70.
