July 4 , 2018
Yesterday crude has given fabulous move on both side, earlier in the morning session it moved down and then it covered all the losses and given closing towards north side. Yesterday’s session was too volatile as weekly API report reveals a 4.5 million barrel draw in the crude oil inventories. We have seen a strong rally as Libya declared force majeure on exports from its two major ports, bringing down its daily supply by an approximate amount of 850,000 barrels per day.
As we have mentioned in our previous report that bulls are taking the charge as it has breached the strong resistance level of $72.71 as we may see further buying. From technical prospective we can see that an uptrend line is also lying on the daily chart which is providing strength to the bulls. Yesterday it has made high of $74.17 level which is highest level since 2014.
Odds are in favor of bulls and generating bullish signal. Intraday bias remains bullish on the pair as long as crude oil is trading above the moving average lines. The way bulls are reacting it seems like they are approaching the $78 level but we will get further confirmation once it trades and settles above the $75 level.
The short term to intermediate term trend is up so in an uptrend market always buy on dips would be profitable opportunity. A bullish crossover on MACD indicator is favoring the bulls and providing us bullish signal for the time being and RSI is also providing bullish signal from above 50 ranges. The $75 level is immediate resistance level followed by $77 whereas $70 level is strong key support level followed by $68 level.