Crude oil is settling at $79.60, up $0.26 (0.33%) on the day after trading in a relatively wide range. Sellers pushed the price down to $78.19, but that low remained above Monday’s $77.84 low, suggesting downside momentum is beginning to lose some steam. During the decline, the price briefly slipped below the broken 38.2% retracement at $78.48 (see chart below), but buyers quickly stepped back in to reclaim that level, keeping the technical outlook from turning more bearish.
On the topside, the next key resistance remains Tuesday’s high at $81.25. A move above that level would shift the focus toward the $82.00 area, where the 50% retracement of the broader decline comes into play (see chart below). A break through that resistance zone would strengthen the bullish case, while failure to do so would keep the recent consolidation intact.
The rhetoric and the bombing continue in the area. That does not necessarily mean that there is not negotiations continuing. Pres. Trump last comments were:
- I don’t like giving deadlines.
- They better behave.
Trump has been saber rattling as well about “next week” and taking out key infrastructure. The blockade is back on which supplies needed by Iran and its people. Honestly we don’t know that all the information.
Recent headline just released says:
- US strikes on iran are strengthening options for potential US escalation
This article was written by Greg Michalowski at investinglive.com.
