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

      Winkelmann

      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

      EXP
      Trading

      70.088

      Entry Price

      72.000

      TP

      68.200

      SL

      69.930 -0.326 -0.46%

      0

      Point

      Flat

      68.200

      SL

      CLOSING

      70.088

      Entry Price

      72.000

      TP

      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
      Risk Warnings and Investment Disclaimers
      You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

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