WTI crude oil gained sharply as fueL demand increases due to US summer. It hit a high of $78.68 at the time of writing and is currently trading at $78.67.
According to American Petroleum Institute, US crude inventories declined by 2.4 million barrels for the week ending June 7th . Markets eye US CPI and US fed monetary policy for further movement.
Major factors for crude oil price movement-
US dollar index (Bullish)- Negative for Crude.
Major resistance - 106/107.
Major support- 104/103.
Geopolitical tension- Escalaltion of tension between Israel and Gaza ( positive for crude).
Ichimoku analysis (4- hour chart)
Tenken-Sen- $77.84
Kijun-Sen- $76.26
The immediate resistance is around $79. Any jump above the target of $79.67/$80/$80.55. On the lower side, near-term support is around $78.15. Any breach below will drag the commodity down to $77.50/$76.87/$76/$75.
It is good to sell on rallies around $79 with SL around $80 for a TP of $75.
