🔽 WTI pulls back below 200-session moving average
Oil prices launched new week's trade higher following drone strike on the US military outpost in Jordan over the weekend. While US forces in the Middle East have been regularly targeted by Iran-linked militias since the beginning of Israel-Hamas war but this was the first attack in which US serviceman were killed. According to media reports, 3 US soldiers were killed in the attack while dozens were wounded. Biden administration was quick to blame the attack on Iran-linked groups and vowed retaliation in the manner and time of its choosing. This, in turn, has reignited fears of a broader conflict in the Middle East with a risk of direct clash between the United States and Iran.
Oil reacted to the news with WTI (OIL.WTI) opening with an around-1% bullish price gap after the weekend. However, as Iran distanced itself away from the strike and US authorities stressed they are not seeking an escalation and a war with Iran, gains started to be erased. WTI erased all the gains and is now trading almost 2% lower on the day.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appTaking a look at OIL.WTI chart at D1 interval, we can see that price attempted to break above the $78.50 resistance zone today but failed to do so, and a quick reversal occurred. Moreover, price has also pulled back below 200-session moving average (purple line), which acted as a resistance in November 2023. The next support level to watch should the pullback deepen can be found in the $75.00 area.
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
