FxWirePro: Buy US oil on dips
Ichimoku Analysis (Weekly Chart)
WTI crude oil recovered more than 0.80 cents from a low of $41.05. The optimism of the US to pass the coronavirus relief bill and hopes of a production cut by Iraq and Saudi. Iraq has announced production cuts of 40000 BPD during August and September. The US-China trade tension and spread of the second wave of coronavirus are 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.