Crude oil prices edged lower on Tuesday as Trump hinted that the U.S. and France were nearing a harmony to preserve the Iran nuclear deal.
French President Emmanuel Macron proposed that the concord to keep the Iranian nuclear deal alive should block Iranian nuclear activity through 2025, end the country’s ballistic missile program and limit Iran’s influence in the Middle East, Bloomberg reported.
This made some traders to discard their bullish bets on new U.S. sanctions against Iran limiting the country’s oil output, extending the rally in oil prices.
Crude oil hourly chart has formed “Rising wedge” pattern. The last session ended up bearish in trend near the channel’s support slope line. The market is expected to retest a key support holding at 4500 and turn bullish. The upside rally could test all the way through 4560-4610 levels in the upcoming sessions. Alternatively, if the market breaks below the key support then it might continue in bearish momentum. The downside rally could test 4450-4400 levels. Key resistance holds at 4610.
Crude Oil prices closed flat on Tuesday, with the likelihood of imposing US sanctions on Iran, along with the Organization of the Petroleum Exporting Countries (OPEC) production cut agreement which has been in effect. In addition, price has also traded near upper Bollinger band formation; which suggests upward trend will continue further for near term. In addition, price has sustained above 21 days SMA ; which intimate medium term trend remains bullishness. So based on the above analysis we expect bullish rally in the price for upcoming day