Oil Chart Calls Turn Before US-Iran News
The chart for crude oil signaled a turn in the market before the latest news on the Iran-US conflict. On Thursday, an article noted that crude had rallied almost without a break for three weeks and hit a strong resistance area built from Fibonacci retracements and the June highs. The price broke above the declining resistance line, but given its volatility, this breakout could be invalidated at any minute.
On Friday, the breakout was indeed invalidated as crude fell back under $90, despite Iran rejecting a ceasefire proposal and Trump considering massive US strikes. The Pentagon later suspended the bombing campaign, and over the weekend, no US attacks occurred, with Iran saying it would halt its own strikes if the pause held.
On Monday morning, crude collapsed, down around 7% in West Texas Intermediate. Technical resistance had marked the end of the rally before the reasons for it officially existed.