Oil prices continue to rise amid the US-Iran stalemate; Iran awaits US blockade removal
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. The first target for the buyers should be the swing level around the 105.00 handle. That’s where we can expect the sellers to step in with a defined risk above the handle to position for a drop back into the 93.00 support zone. The buyers, on the other hand, will look for a break to increase the bullish bets into new highs.
CRUDE OIL TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
On the 1 hour chart, there’s not much we can add here as from a risk management perspective, the buyers will have a better risk to reward setup around the support zone, while the sellers will need a break below the zone to reopen the door for new lows. The red lines define the average daily range for today.
UPCOMING CATALYSTS
Tomorrow we get the US Consumer Confidence report. On Wednesday, we have the FOMC policy decision. On Thursday, we get the US Q1 GDP, the US Employment Cost Index and the latest US Jobless Claims figures. On Friday, we conclude the week with the US ISM Manufacturing PMI. It goes without saying that the focus remains solely on US-Iran headlines.
This article was written by Giuseppe Dellamotta at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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