FUNDAMENTAL OVERVIEW
The market has quickly forgotten about Maduro and Venezuela as the focus switched to the protests in Iran and Trump’s threats of military action to support the protestors. The US President is taking advantage of the protests to either overthrow the current regime or force them to sign deals on US terms.
Yesterday, Trump stated on his Truth Social that all the meetings with Iran’s officials have been cancelled and exhorted the Iranian people to keep protesting because help was on the way.
Nobody knows what he meant with “help is on the way” and when asked about it he answered with a “you are going to have to figure it out”. Oil prices rose to new highs following Trump’s post as fears of military intervention continue to be a tailwind for the market.
WTI OIL FUTURES TECHNICAL ANALYSIS – DAILY TIMEFRAME
WTI oil futures – daily chart
On the daily chart, we can see that we recently got a breakout of the falling channel with the buyers piling in with more conviction. Moreover, yesterday the price broke above the swing level around the $60.50 level opening the door for a rally into the $66.00 price region. The market is now driven solely by the geopolitical tensions between US and Iran, so traders will keep focusing on that front for the next direction.
WTI OIL FUTURES TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME
WTI oil futures – 1 hour chart
On the 1 hour chart, we can see that we have an upward trendline defining the bullish momentum. We can expect the buyers to continue to lean on the trendline to keep pushing into new highs, while the sellers will want to see a break below the trendline and the $60.50 level to position for a pullback into the major support zone around the $58.80 level.
