FxWirePro: US oil breaks trend line resistance, jump till $41 likely
Ichimoku Analysis (4-hour chart)
Tenken-Sen- $38.19
Kijun-Sen- $39.33
US oil has halted its 2-day of weak trend and shown a minor recovery of more than $2. The positive U.S economic data has supported prices at lower levels. The stimulus and bond-buying program of various major central banks will have a positive impact on the economy. It hit an intraday high of $39.33 and is currently trading around $39.04.
Technically, the commodity has taken support near the cloud bottom at $37.10. Any significant weakness possible if it closes below that level, a dip till $35.07 (200-4H MA)/$34.34 (Jun 15th, 2020 low) likely.
On the higher side, a significant move for the day can happen if it breaks $39.33 (Kijun-Sen). Any indicative violation above targets $40.52/$41.61.
It is good to buy on dips around $38.10 with SL around $37 for the TP of $41.50.
