FUNDAMENTAL OVERVIEW Oil prices continue to edge higher amid the lack of progress in the US-Iran negotiations and the Strait of Hormuz closure.
FUNDAMENTAL OVERVIEW Oil prices continue to edge higher amid the lack of progress in the US-Iran negotiations and the Strait of Hormuz closure. The latest reports say that Iran proposed to reopen the Strait of Hormuz if the US blockade is lifted and then hold nuclear talks later.
Trump has been insisting on reaching a deal before the US blockade is lifted and the US stock markets making new all-time highs almost daily might not change his position. This could prolong the stalemate and keep oil prices supported. CRUDE OIL TECHNICAL ANALYSIS – DAILY TIMEFRAME On the daily chart, we can see that crude oil is now trading above the 93.00 resistance zone after the breakout in the final part of last week.
We can expect the buyers to continue to step in around the zone with a defined risk below it to keep pushing into the cycle highs. The sellers, on the other hand, will want to see the price falling back below the zone to pile back in for a drop into the 78.00 support next. CRUDE OIL TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME On the 4 hour chart, we can see more clearly the recent price action with the bullish momentum increasing after the break above the downward trendline that was defining the pullback into the 78.00 support.