Fundamental Development: Oil prices extended gains in early Asian trade on Wednesday amid simmering geopolitical tensions as Russia cut gas supplies to Poland, while hopes of Chinese economic stimulus buoyed the demand outlook. Brent crude futures rose 44 cents, or 0.4%, to $105.43 a barrel. U.S. West Texas Intermediate crude futures gained 12 cents, or 0.1%, to $101.82 a barrel. Crude prices settled about 3% higher on Tuesday in volatile trade as the market torn between supply and demand concerns over Russian oil and gas disruption and a worsening global economic outlook.
Short Term Technical View: As per Bollinger, band indicator XTIUSD is showing strong bullishness in 1-hour chart. It is trading above yesterday resistance level 101.75. As per the chart buy on the dip strategy is good for XTIUSD. As per my view if XTIUSD trading above 101.75 in U.S. Session and crude oil inventories data also indicate positive so it will test next resistance level 104 near term . There is very strong support zone below 100. (Note: Crude oil Inventories will release at 8 PM (IST).
Alternative Scenario: If XTIUSD will not sustain above 101.75 in U.S. Session and Crude oil inventories data indicate negative so it will be give great opportunity to short sell with the target of 98.
Short Term Technical View: As per Bollinger, band indicator XTIUSD is showing strong bullishness in 1-hour chart. It is trading above yesterday resistance level 101.75. As per the chart buy on the dip strategy is good for XTIUSD. As per my view if XTIUSD trading above 101.75 in U.S. Session and crude oil inventories data also indicate positive so it will test next resistance level 104 near term . There is very strong support zone below 100. (Note: Crude oil Inventories will release at 8 PM (IST).
Alternative Scenario: If XTIUSD will not sustain above 101.75 in U.S. Session and Crude oil inventories data indicate negative so it will be give great opportunity to short sell with the target of 98.