The changing situation in the Middle East has led to a cautiously optimistic outlook for oil prices.

Energy

Commodity

Summary:

With the prospects for the US-Iran Doha negotiations uncertain and the temporary ceasefire agreement fragile, oil prices may rebound in the short term.

BUY WTI

Close Time

CLOSED

70.088

Entry Price

72.000

68.200

88.247 -3.606 -3.93%

188.8

Pips

Loss

68.200

67.841

Exit Price

70.088

Entry Price

72.000

Fundamentals

Although the market still expects energy transport through the Strait of Hormuz to resume, escalating tensions between the US and Iran, with both sides exchanging missile attacks and the prospects for the Doha negotiations between the two countries remaining uncertain, highlight the fragility of the temporary ceasefire agreement. The repeated conflicts have undoubtedly exacerbated the uncertainty of the global supply chain.

In the short term, oil prices may once again be supported by geopolitical risk premiums and rebound higher.

Technical aspects

The changing situation in the Middle East has led to cautious optimism regarding oil prices.

Looking at the 4-hour chart, XTIUSD recently broke down, once falling below the 70 mark, almost wiping out the gains made during the Middle East conflict. The short-term decline has narrowed somewhat, and the RSI indicator shows a bottom divergence. Moreover, the price is located in the support area of the previous starting point of the rise, so the possibility of oil prices rebounding and rising again cannot be ruled out.

In terms of trading strategy, one could try to profit from a rebound by going long near the current price of 70, with a target of around 72 and a stop-loss order below 68.4.

Trading advice

Trading direction: Long

Entry fee: 70.0

Target bit: 72.0

Stop-loss level: 68.2

Downside support levels: 68.4/70.0

Upward resistance levels: 72.0/76.7

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