WTI crude oil showed a minor pullback despite weak US economic growth. It hit a high of $84.17 at the time of writing and is currently trading at $83.79.
The US economy slowed to 1.6% at an annual rate well below the forecast of 2.5%. According to Goldman Sachs crude oil inventories increased now after delays due to Redsea disruptions.
Major factors for crude oil price movement-
US dollar index (Bullish)- negative for Crude. Major resistance - 106.50/107.20. Major support- 105/103.80.
Geopolitical tension- Easing of tension between Israel and Iran (Negative for crude)
Ichimoku analysis (4- hour chart)
Tenken-Sen- $83
Kijun-Sen- $82.36
The immediate resistance is around $84.35. Any jump above the target of $85/$86.20/$87. On the lower side, near-term support is around $82.50. Any breach below will drag the commodity down to $81.95/$80.70/$80.
It is good to sell on rallies around $84 with SL around $85 for a TP of $80.
