Oil Prices sold off on a combination of peace and inflation story. US Secretary of State Antony Bliken has expressed hopes that Hamas will accept the latest Israeli proposal that he termed as “extraordinarily generous”. Latest US data meanwhile showed inflation pressures picking up with the Employment Cost Index reading 1.2% quarter-on-quarter stronger than forecast and up the prior 0.9% read. The latter news comes in a backdrop of today’s FOMC meeting where market will be looking for clues whether the persistent inflation pressures will clearly scrap expectations of a rate cut in June.
Resistance
- 88.14 – Monday’s High
- 87.69 – Tuesday’s High
- 86.74 – Intraday Support/Resistance
Support
- 85.15/62 – Pullback Low / 50D Moving Average
- 84.49 – Daily Range Play Floor
- 83.63 – Daily Range Play Cieling
Oil Prices finally have a clear break of its accelerated trend line with Tuesday’s close. Prices are now working the range around previous pullback low and 50D Moving Average suggesting we are well supported in the immediate environs. With a US FOMC meeting and market awaiting for Hamas response to the proposal by Israel we prefer remaining sidelined. Bulls are well advised to look for a consolidation around the support first before committing. Have tight stops and reverse under the immediate support particularly if the sell-off is driven by a ceasefire.
