Oil is trading higher today, extending the ongoing rebound into the fourth consecutive session. Oil prices continue to climb as diplomatic efforts fail to resolve Middle East tensions. Israeli Prime Minister Netanyahu rejected a ceasefire proposal from Hamas, saying that group's demands were unacceptable. Israeli leader vowed to continue fighting the group until 'total victory' is achieved. Meanwhile, US military continues to strike Iran-backed militias in Iraq and Syria in retaliation for the drone strike on a US military outpost in Jordan, in which 3 US soldiers were killed. Houthi attacks on commercial shipping in the Red Sea as well as US and UK retaliatory strikes on Houthis also continue.
Taking a look at Brent (OIL) chart at H4 interval, we can see that price moves have been largely confined to the $76.50-80.50 trading range since mid-December 2023, spare for a few false breakouts. OIL bounced off the lower limit of the range at the beginning of this week and is making a break above the upper limit today. A textbook range of the breakout suggests a possibility of a move to as high as $85 area. However, as we have already said, there were a few false breakouts from the range over the past two months, therefore traders should remain cautious. The $82.75 price zone, marked with previous price reactions, may offer some resistance should bulls remain in control.
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Source: xStation5
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