Ichimoku Analysis (4 Hour)
Tenken-Sen- $42.19
Kijun-Sen- $42.22
WTI crude oil has recovered sharply more than $2 from low of $41.44 on Gulf storms. The hurricane Marco and Laura are expected to hit the Gulf of Mexico by this week. Almost 57% of energy firms shut offshore oil and gas production. The slight pessimism in the recovery of the global economy after COVID-19 and US, China trade war is putting pressure on oil at higher levels.
Technically, the commodity is facing primary resistance at $43.50, and any convincing break above targets $44.95/$48. Significant buying only above $50.
The pair is facing strong support at 200- 4H MA, a significant move only if it breaks below $41. Any indicative violation below will drag the commodity to $40/$38.71.
It is good to buy on dips around $42 with SL around $41 for the TP of $44.80.
