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FxWirePro- Crude oil Daily Outlook

WTI crude oil recovered slightly after strong US economic data. It hit a high of $77.80 yesterday and is currently trading at $77.91.

Markets anticipate the extension of the supply cut in the upcoming Jun2 OPEC+ meeting on June 2nd.

The weekly Baker Hughes oil and gas rigs count declined by 4 to 600 in the week ended May 24th. Oil rigs came unchanged at 407.

Major factors for crude oil price movement-

US dollar index (Bullish)- negative for Crude.

Major resistance - 105/106.50.

Major support- 104/103.

Geopolitical tension-  easing tension between Israel and Gaza  (negative for crude).

Ichimoku analysis (4- hour chart)

Tenken-Sen- $77.06

Kijun-Sen- $77.69

The immediate resistance is around $78.50. Any jump above the target of $79.30/$80/$80.55/$81.20/$82/$82.53/$83. On the lower side, near-term support is around $7. 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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