Menu

Search

  |   Technicals

Menu

  |   Technicals

Search

FxWirePro: US Oil upside capped by 55-W EMA, good to buy on dips

Ichimoku Analysis (Weekly Chart)

 

Tenken-Sen- $39.37

 

Kijun-Sen- $27.23

 

WTI crude oil jumped more than $2 yesterday to $43.50 and started to decline from that level. The jump came after better than expected US EIA crude inventory report. The inventory fell last week by  -7.4M compared to an estimate of -3.4M. But the US-China trade tension and spread of the second wave of coronavirus is 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.

 

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.