It has been an active period for oil price movements in the short term. So far, the WTI barrel has accumulated a gain of more than 13% over the last four trading sessions, even briefly moving above the $75 reference level.
The conflict in the Middle East remains ongoing, along with heightened military surveillance and restricted flows through the Strait of Hormuz. This factor has been one of the main catalysts behind the bullish move, considering that more than 20% of global crude production passes through this route. The potential disruption in transportation dynamics has supported a consistent buying bias in recent sessions.
However, some neutrality and caution have recently begun to emerge in the short term. Still, any further escalation of the conflict could reignite buying pressure in the coming sessions.
Uptrend Remains Dominant
For several weeks, oil prices have maintained a consistent upward trend. So far, no meaningful selling move has been observed that could threaten this technical structure, which remains the dominant pattern in the short term.
That said, the recent increase in volatility may be signaling a scenario of overextended buying pressure, potentially leaving room for short-term corrective pullbacks in the coming sessions.
Technical Indicators
RSI: The RSI continues to advance above the 70 overbought level, indicating that average momentum remains bullish. However, this also suggests a possible overextension scenario, which could open the door to downside corrections if the indicator remains in overbought territory for an extended period.
TRIX: The TRIX indicator shows a consistent line above the neutral 0 level and maintains a positive slope. This reflects that the average strength of exponential moving averages continues to favor a bullish bias in the medium term, despite the potential for short-term pullbacks.
Key Levels to Watch
$77: Recent high area and main bullish resistance to monitor. Sustained moves above this level could reaffirm a dominant buying bias and open the door to a more aggressive extension of the upward trend.
$70: Key psychological level and recent neutrality zone. It may serve as a reference point in the event of short-term corrective moves.
$67: Important support aligned with the prevailing upward trendline. A break below this level could revive selling pressure and put the current bullish structure at risk.
Written by Julian Pineda, CFA, CMT – Market Analyst
The conflict in the Middle East remains ongoing, along with heightened military surveillance and restricted flows through the Strait of Hormuz. This factor has been one of the main catalysts behind the bullish move, considering that more than 20% of global crude production passes through this route. The potential disruption in transportation dynamics has supported a consistent buying bias in recent sessions.
However, some neutrality and caution have recently begun to emerge in the short term. Still, any further escalation of the conflict could reignite buying pressure in the coming sessions.
Uptrend Remains Dominant
For several weeks, oil prices have maintained a consistent upward trend. So far, no meaningful selling move has been observed that could threaten this technical structure, which remains the dominant pattern in the short term.
That said, the recent increase in volatility may be signaling a scenario of overextended buying pressure, potentially leaving room for short-term corrective pullbacks in the coming sessions.
Technical Indicators
RSI: The RSI continues to advance above the 70 overbought level, indicating that average momentum remains bullish. However, this also suggests a possible overextension scenario, which could open the door to downside corrections if the indicator remains in overbought territory for an extended period.
TRIX: The TRIX indicator shows a consistent line above the neutral 0 level and maintains a positive slope. This reflects that the average strength of exponential moving averages continues to favor a bullish bias in the medium term, despite the potential for short-term pullbacks.
Key Levels to Watch
$77: Recent high area and main bullish resistance to monitor. Sustained moves above this level could reaffirm a dominant buying bias and open the door to a more aggressive extension of the upward trend.
$70: Key psychological level and recent neutrality zone. It may serve as a reference point in the event of short-term corrective moves.
$67: Important support aligned with the prevailing upward trendline. A break below this level could revive selling pressure and put the current bullish structure at risk.
Written by Julian Pineda, CFA, CMT – Market Analyst
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إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.