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FxWirePro: US Oil faces strong resistance at 200 HMA, good to sell on rallies

  • Major support- $46.80 (trend line joining $37.59 and $45.83)
     
  • Major resistance - $48.50 (200 HMA)
     
  • US Oil has slightly recovered till $48.40 after making a low of $46.69. It is currently trading around $47.58.
     
  • Short term trend is weak as long as resistance $48.50 holds. Any break below $47.50 will drag the pair down till $46.70/$45 in the short term.
     
  • On the higher side any break above $48.50 will take the commodity till   $49.01 (21 day MA)/$49.45.
     
  • Overall bearish invalidation only above $51.65.

It is good to sell on rallies around $47.65-$47.75 with SL around $48.50 for the TP of $46.60/$45

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